08/16/2024
THE MORE YOU KNOW!
NAR Class Action Settlement Update
Are the new rules already in effect?
• Not yet. Officially, the rules should be in effect in mid-August 2024. However, some states and brokerages are implementing changes prior to that date.
Will I need to pay Realtor commissions if I sell my house?
• The short answer is, yes. There are typically two agents in a real estate sale: the agent representing the Seller, and the one representing the Buyer. Both will expect to receive payment for their services. If your client is listing their property, the listing agent will charge a commission. The Seller may also be asked to contribute toward the Buyer agent’s commission, as has been the practice for some time. Since commissions are always negotiable, this will be something your client should discuss with their Certified Divorce Real Estate Expert, because every situation is different.
How will shopping for houses change?
• Going forward, Realtors will be required to have contracts with Buyers before doing any work on their behalf, including showing houses. This is in line with attorneys requiring retainer agreements before establishing client relationships — the same will be true for Realtors who represent Buyers.
If I buy a house, how will my agent be paid?
• Once the new policy changes go into effect, Buyers will ultimately be responsible for their agent’s fees. However, when Buyers submit offers, they can ask for Sellers to contribute toward the Buyer agent’s commissions, much like Sellers often currently contribute toward Buyers’ closing costs. A Certified Divorce Real Estate Expert will be able to determine what Buyer concession requests are reasonable given the particular market, price point, and Seller goals.