NAR Settlement & Buyer Representation
(3/27/2024)
Points of NAR Recent Settlement
- Makes clear that NAR continues to deny any wrongdoing in connection with the Multiple Listing Service (MLS) cooperative compensation model rule (MLS Model Rule).
- NAR would pay $418 million over approximately four years.
- To put in place a new MLS rule prohibiting offers of broker compensation on the MLS. This would mean that offers of broker compensation could not be communicated via the MLS, but they could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals.
- NAR has agreed to enact a new rule that would require MLS participants working with buyers to enter into written agreements with their buyers. ( Both will be effective mid-July 2024)
What can/will happen in the future?
1)Seller will pay only 3% commission?
2)Buyer will have to pay their own commissions?
3)What can you do if the seller refuses to pay buyer’s broker fee?
4)As a buyer broker, how do you know you will get the commission?
5)The number of agents in U.S. will be reduced?
( 1.6M NAR members among 3M licensees in U.S.)
6)As a buyer agent, what should I do get the business ?
(Throughout 2024, NAR is making the popular Accredited Buyer’s Representative (ABR®) designation course, typically $295, available to REALTORS® at no cost. Take the first step toward earning your ABR® designation at become.abr.realtor.)
7)If the seller pays only listing side commission, then the house price will be lowered?
8)This case against NAR can affect lowering the commission in general?
9)What will happen commercial brokering commission and business brokering commission?
(CBCG – Business Brokering)
10)This case will affect Residential lease commission?
( Landlord side? Tenant side? )
11)This case will make real estate broker job more difficult?
13)What geological area in U.S. will be affected by this case?
14)This case will have influence more in seller’s market or in buyer’s market?
15) Dual agent-ship will be increased? And it will be beneficial to customers?
