Learn how the NAR lawsuit will make changes in real estate practices.
What’s going on with the National Association of Realtors settlement? The buzz around the NAR lawsuit has been significant, and understandably so. Everyone in real estate is curious about what this means and the changes it will bring. One of the key points to understand is that the transition will be quite fluid initially, as not everything is set in stone yet. I recently attended a class that shed some light on the timelines and changes, which are still evolving.
One major change to note is coming on August 17. After this date, offers of compensation can no longer be advertised on the Multiple Listing Service or any public website. This is a significant shift from a few years ago when a lawsuit with the Department of Justice required transparency, putting these offers on sites like Zillow and Realtor.com. Now, all those postings must be removed.
So, what does this mean in practical terms? The offer of compensation, which is essentially the buyer’s broker commission, will no longer be publicly advertised. For instance, if you list a property and offer a portion of the commission to the buyer’s broker, this information will no longer be visible on public platforms. This doesn’t mean offers of compensation will cease to exist, but it changes how they are communicated and negotiated.
“This change means that offers of compensation can no longer be advertised on the MLS or any public website.”
Another significant change involves buyer brokerage agreements. Moving forward, Realtors must have these agreements signed before showing a property. This means if you want to view a property, you must first sign an agency form with your realtor, outlining their value and services. This practice, while always encouraged, will now be mandatory, marking a considerable shift in how real estate transactions are conducted.
These changes will undoubtedly affect the real estate market, and it will be interesting to see how things evolve over the next six months to a year. As a consumer, be prepared for these new requirements and ensure you understand the value your realtor brings to the table before entering into any agreements.
Stay tuned as we look into these changes together. If you have any questions or need more information, feel free to call or email me. I look forward to hearing from you.