As of August 17  2024, real estate transactions in the United States will undergo significant changes. The National Association of REALTORS (NAR) has reached an agreement with plaintiffs to settle claims related to broker commissions. This settlement aims to promote transparency and fairness in the industry.

What You Need to Know

For homebuyers, there are some crucial updates:

* Before touring a property, you’ll need to sign a written agreement with your agent. This document must outline:

+ The compensation structure for the agent’s services

+ Any potential conflicts of interest

+ The level of service you can expect from your agent

This agreement applies to both in-person and live virtual home tours.

* You won’t need a written agreement if you’re simply browsing properties at an open house or asking agents about their services.

* Your agent’s compensation remains fully negotiable, so be sure to ask questions and understand the terms of their service before committing.

Changes for Real Estate Professionals

Real estate professionals will also see changes:

* Agents using Multiple Listing Service (MLS) platforms can no longer communicate offers of compensation on these platforms. Instead, they’ll need to discuss compensation outside of MLS.

* Sellers can still offer buyer concessions on an MLS platform, such as discounts on closing costs.

What’s Next?

As the real estate industry continues to evolve, it’s essential for homebuyers and sellers alike to stay informed about these changes. Continue to visit us for more information and guidance on how to navigate these updates.