On March 15th 2024, the National Association of Realtors (NAR) settled a lawsuit that will change our current system of compensation to Real Estate Agents.
Some Buyers and Sellers have been questioning our system, established by NAR, regarding the lack of transparency and why one party pays a commission to both Realtors.
If the current ruling is signed off by the courts, then the following changes must occur by July 15, 2024:
- Compensation offers moved off the MLS: NAR has agreed to put in place a new rule prohibiting offers of compensation on the MLS. Offers of compensation could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. And sellers can offer buyer concessions on an MLS (for example—concessions for buyer closing costs). This change will go into effect in mid-July 2024.
- Written agreements for MLS participants acting for buyers: While NAR has been advocating for the use of written agreements for years, in this settlement we have agreed to require MLS participants working with buyers to enter into written representation agreements with their buyers. This change will go into effect in mid-July 2024.
This morning, I was approached by a current Seller to list a property with a commission for only the listing agent. If a Buyer wants individual representation to purchase the listing, then the Buyer will hire and pay the Buyer's Agent.
For additional information, please call an Agent at Pfeifer Realty Group to discuss more specifics: 239-472-0004
We look forward to helping you as our industry evolves yet again to provide the best service for our customers.
Visit www.NAR.realtor for more information.