The National Association of Realtors (NAR) entered into a settlement to end seller commission class action lawsuits… and policy changes are to take effect by August 17, 2024.
Our local NorthstarMLS is implementing two key changes affecting buyers and sellers which will take effect August 15, 2024.
Realtors may not show homes to buyers without a written agreement
The recent changes require that potential home buyers and real estate brokers (like RE/MAX Results Realtors) enter into a written agreement before visiting and touring properties currently listed for sale in the MLS. A Buyer Representation Agreement qualifies but is not required. A simple Home Tour Agreement will suffice if you are not yet ready to enter into a representation agreement. There is no fee and no ongoing obligation… just an agreement to look at some properties during a specified time period.
The offer of compensation field will be removed from the MLS on August 15 (but can be offered off MLS)
Every listing in our MLS currently indicates the cooperating compensation offered to the buyer’s broker… which typically covers the compensation in the buyer representation agreement, meaning the seller typically pays the buyer’s agent compensation. If the MLS offered compensation is less than that in the buyer representation agreement some negotiation may be required, including the buyer making up some or all of the difference.
It also prohibits a buyer’s broker from collecting more compensation than what was agreed to in the buyer agency contract.
Offers of compensation will no longer be allowed in the MLS, but it does not mean cooperating compensation is illegal or unpermitted… it just must be conveyed through another medium.
Bottom Line
The bottom line is it will no longer be obvious in a property listing who is paying what, and every transaction will likely involve more negotiation.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
