The time has come: Real estate practice changes are now in effect, and it’s crucial to integrate them into your business if you haven’t already. The National Association of REALTORS® has been diligently preparing the industry for these updates. Make sure you review or familiarize yourself with the new requirements, such as written buyer agreements and how to communicate offers of compensation. Visit facts.realtor, NAR’s resource hub, where you’ll also find home buyer and seller guides to these practice changes—perfect for sharing with your clients.
For a quick refresher on how these changes might impact your business, check out this concise guide. It also explains how these updates might play out during transactions. Here are the key points to remember:
- Compensation remains fully negotiable between buyers, sellers, and their agents.
- Remind consumers to ask questions about compensation and to understand the services they’ll receive when selecting an agent.
- Practice change: Buyers must sign a written agreement with their broker before touring a home, whether in person or virtually. This agreement will outline the terms negotiated, including services provided, costs, and how the agent will be compensated.
- If the seller hasn’t offered compensation, buyers can request it in their offer. If the seller declines to pay, the buyer will be responsible for compensating their agent if stated in the agreement.
- Buyers do not need a written agreement when speaking with a listing agent at an open house or inquiring about their services.
- Current regulations do not allow agent commission payments to be included in a mortgage.
- Practice change: The listing broker or seller may offer compensation to the buyer’s agent, but there are now limitations on how that offer can be marketed—offers of compensation can no longer be communicated through an MLS.
- Practice change: If there is an offer of compensation to a buyer broker from a listing broker or seller, the seller must provide written approval for the specific amount or rate.
These changes enhance consumer choice through increased transparency. REALTORS® are ethically bound to act in their client’s best interest. For more detailed guidance on these practice changes and their impact on your clients’ transactions, explore additional resources, including videos and articles.
