Discussing NAR Settlement With RE Broker & Mediator Karol Kochova

Sellers Can No Longer Offer Compensation to Buyers via MLS

There are some big changes happening in real estate, and it's important to stay informed! Under a recent settlement, the National Association of Realtors (NAR) and REALTOR® MLSs can no longer require listing brokers or sellers to offer compensation to buyer brokers. Even if sellers do choose to offer compensation, it can't be a blanket, unconditional, or unilateral offer like before.

Compensation Offers No Longer Through MLS

One of the most significant changes is that sellers and their agents can no longer use MLS platforms to make compensation offers to buyer brokers or their representatives. This change is designed to encourage more direct and transparent negotiations between buyers and sellers, giving everyone a fairer shot.

No Sharing of Buyer Broker Compensation Offers

In line with these new rules, all fields related to broker compensation on MLSs are being removed. This means that compensation offers made to buyer brokers or representatives can no longer be shared through the MLS, ensuring a more straightforward and transparent process.

Written Agreements Required for Buyer Broker Compensation

A new and important rule is that buyer agents must now have a written representation agreement in place before showing any properties. This agreement should clearly outline the amount or rate of compensation the buyer's agent will receive, or how that compensation will be determined. It's all about being transparent and making sure everyone is on the same page before property tours begin.

Clear Communication About Negotiating Commissions

Settlement Agreement now requires that both sellers and buyers be clearly informed that broker commissions are not set in stone and can be negotiated. This important disclosure needs to be included in the broker's listing agreement, the agreement with buyers, and any pre-closing documents. It's all about making sure everyone knows their rights to negotiate.

These updates aim to make the real estate process more transparent, fair, and straightforward for everyone involved. Whether you're buying or selling, understanding these changes can help you navigate your next real estate transaction with confidence.