I wanted to bring to your attention the recent changes resulting from the NAR lawsuit settlement, which are now in effect. These adjustments represent one of the most significant shifts in the real estate industry in decades. Here’s a breakdown of what this means:
Understanding the NAR Lawsuit:
The lawsuits arose because buyers felt that commission details weren’t transparent enough, and sellers questioned why they should cover the cost of buyers’ agent fees. The settlement now prohibits the display of commission information on the MLS or related websites.
Key Changes for Sellers:
- Our current agreements will remain as they are.
- Buyers will handle the negotiation of their broker’s commission independently.
- As offers are received, an “offer of compensation” form may be included with them.
- Your focus should continue to be on your net proceeds, taking into account all expenses, including commissions.
Key Changes for Buyers:
- You’ll need to sign a buyer’s agreement before touring properties with your broker, which is now a legal requirement.
- This agreement will specify your broker’s commission, and they cannot receive more than the agreed amount unless a separate agreement is signed.
- If a seller decides not to pay the buyer’s broker commission, you’ll be responsible for covering the amount specified in your agreement.
General Information for Everyone:
- Open houses will remain open to everyone without the need for any agreements.
- Brokers can still display commission information on their own websites, social media, and signs, but it will no longer be available on MLS-affiliated sites like Redfin, Zillow, etc.
If you have any questions about buying or selling, please don’t hesitate to reach out to me, Ann Cheng, at anncheng39@gmail.com. I’m here to help!
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