08/16/2024
❌𝐀𝐓𝐓𝐄𝐍𝐓𝐈𝐎𝐍❌
‼️ 𝐄𝐅𝐅𝐄𝐂𝐓𝐈𝐕𝐄 𝐀𝐮𝐠𝐮𝐬𝐭 𝟏7𝐭𝐡 ‼️
♦️NEW REAL ESTATE RULES♦️
New rules/laws go into effect that will change the process home buyers and sellers have become accustomed to. All buyers looking to purchase any residential property MUST sign a “Buyer Representation Agreement” BEFORE touring any property in person.
Below are some key points as well as some potential questions and answers you may have about these changes.
🏡 “WHAT IF I’M JUST WANTING TO SEE THE INSIDE OF THE HOUSE, CAN’T YOU JUST SHOW IT TO ME REAL QUICK?
Starting August 17th, no REALTOR®️will be able to unlock a door without you first signing the Buyer Representation Agreement. This is non-negotiable and is part of a legally binding settlement for all REALTORS®️. (Thanks NAR for that🙄)
📃 ‘SO WHAT EXACTLY IS A BUYER REPRESENTATION AGREEMENT AND WHY DO I HAVE TO SIGN IT?’
The Buyer Representation Agreement is a contract between you, the Buyer, and your REALTOR®️’s Brokerage. It outlines the details of your relationship, roles and responsibilities, and the REALTOR®️’s compensation. The compensation/commission stated is now discussed and agreed upon before touring any home together, including who is responsible for paying the commission fee as well as possible avenues for collecting compensation.
💵 ‘THE BUYER IS NOW RESPONSIBLE FOR PAYING COMMISSION??
The answer to this one is yes, BUT…. not necessarily. This is where things get a little muddy, but ultimately, the buyer pays. 
The agreement states that the Buyer is responsible for commissions; however, there are situations where others, including the Seller or the Listing Broker, may cover this cost. This is best explained in person in a consultation meeting.
🤔 ‘WHAT IF MY AGENT ISN’T A GOOD FIT OR I CHANGE MY MIND?’
The agreement will outline the termination process, along with any possible fees associated with termination. This is why it will be important to review your Buyer Representation Agreement carefully. The length of the agreement is also negotiable and will be determined by you and your agent—it can be as short or as long as you both agree to.
Okay, so how did we get this change?? Historically, Sellers paid the Listing Broker a commission, which was then shared with the Buyer’s Broker. However, this led to a misunderstanding that “The Seller pays the Buyer’s Agent,” which isn’t entirely accurate. This misconception resulted in a class-action lawsuit, driving these changes.
Also, as a part of this NAR settlement, Agents/Brokers cannot advertise ANY compensation via the MLS, meaning Buyer’s Agents aren’t guaranteed compensation like before.
Personally, I am NOT A FAN of the change in this process. I’m including additional information our Marketing Department has put together to help better explain and understand the lawsuit settlement.
