NAR Settlement Information

HOMEBUYERS:

The National Association of Realtor’s recent settlement has led to several changes that benefit
homebuyers:

• You will sign a written agreement with your agent before touring a home.
• Before signing this agreement, you should ensure it reflects the terms you have negotiated with your
  agent and that you understand exactly what services and value will be provided, and for how much.
• The buyer agreement must include four components concerning compensation:
  • A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent
    will receive or how this amount will be determined.
  • Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended
    (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the
    buyer”).
  • A term that prohibits the agent from receiving compensation for brokerage services from any source
    that exceeds the amount or rate agreed to in the agreement with the buyer; and,
  • A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.
• Written agreements apply to both in-person and live virtual home tours.
• You do not need a written agreement if you are just speaking to an agent at an open house or asking
  them about their services.
• The seller may agree to offer compensation to your agent. This practice is permitted but the offer cannot
  be shared on a Multiple Listing Service (MLS)— MLSs are local marketplaces used by both buyer brokers
  and listing brokers to share information about properties for sale. REALTORS® are members of the
  National Association of REALTORS®
• You can still accept concessions from the seller, such as offers to pay your closing costs. These practice
  changes went go into effect August 17.

What the settlement doesn’t change:

• Agents who are REALTORS® are here to help you navigate the homebuying process and are ethically
  obligated to work in your best interest.
• Compensation for your agent remains fully negotiable, and if your agent is a REALTOR®, they must abide
  by the REALTOR® Code of Ethics and have clear and transparent discussions with you about
  compensation. When finding an agent to work with, ask questions about compensation and understand
  what services you are receiving.
• You have choices. Work with your agent to understand the full range of these choices when buying a
  home, which will help you make the best possible decision for your needs.

More details about these changes and what they mean can be found at: facts.realtor