New nationwide laws regarding real estate activity and compensation have been put in place as of August 17, 2024.
Going forward, buyers and their buyer agent (or broker) MUST sign a "Buyers Representation and Broker Compensation Agreement" BEFORE doing any of the 3 following activities:
1) Seeing homes for sale
2) Getting property specific valuations and market analysis
3) Making an offer to purchase
In the agreement, you will commit to the length of the representation, qualifying homes and/or areas or interest, and compensation that will be paid to your buyer agent/broker upon closing for services rendered, which will most often be included as a seller-paid cost when making your offer.
Be cautious about committing exclusively! This easy to overlook checkbox is binding and could commit you to more than you think. Please call us at (760) 537-0346 to discuss these new laws and for quality representation, hard work, and hustle by real estate brokers with over 20 years experience when shopping for and buying your next home!
Links to view the new buyer agreement and more information about the new laws:
Overview of settlement:
The real estate lawsuit against the National Association of Realtors (NAR) that was settled in March 2024 was *Burnett v. The National Association of Realtors*. The lawsuit was filed by a group of Missouri home sellers who claimed that NAR rules violated antitrust laws and increased broker commissions. The settlement took effect on August 17, 2024.
The settlement includes:
Compensation offers moved off MLS: NAR has agreed to put in place a new rule prohibiting offers of compensation on an 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).
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 agreements with their buyers before touring a home.
The settlement could mean that sellers may not pay any portion of the buyer's agent fee, which would put the burden on the buyer. However, most sellers understand the value of a buyers agent and are still willing to compensate the buyers broker as a term of the offer.
Please call us at (760) 537-0346 if you have any questions or concerns about these new laws or to help you sell or buy a house!
