August 17th changes the game for real estate. We continue to get updates, attend meetings and try to understand all that is still evolving.
We thought we would share the latest from NAR:
Hello all,
Ahead of the August 17 implementation of NAR’s practice changes, we wanted to provide a few reminders of actions that are required to obtain a release of liability and protect your organization from claims related to broker commissions:
- We recommend all MLSs implement practice changes by August 17. REALTOR® MLSs (those owned exclusively by one or more REALTOR® Member Boards) must implement the changes by this date to remain in compliance with NAR policy.
- Offers of compensation are prohibited on MLSs. Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Offers of compensation help make homeownership and the benefits of professional representation more accessible to buyers, including first-time homebuyers, increase homeownership opportunities for historically underserved groups, and benefit sellers by expanding the potential buyer pool.
- Agents working with a buyer must enter into a written agreement before touring a home. Ahead of August 17, NAR encourages all members to address form changes and prepare to educate real estate professionals and consumers about revised forms. NAR policy does not dictate terms of buyer agreements, but NAR has created resources to assist with implementation of the settlement terms—such as tips on clarity and emphasizing consumer choice—including our “Written Buyer Agreements 101” resource, available here.
The practice changes are detailed here, and clarifying information is available in our FAQon facts.realtor.
We also want to make you aware of several recent updates including:
- NAR Legal has 5 new “Settlement Facts” videos which are available here. The new videos cover:
- What happens to offers of compensation on the MLS after August 17
- Required terms for listing agreements to comply with the settlement
- What is class notice, and what to expect
- Using a broker compensation agreement
- How the settlement impacts seller concessions
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