CAL DRE #02216162
When will the practice changes take effect?
On August 17 2024, NAR’s mandatory MLS policy changes, which implement the settlement’s required practice changes, will take effect.
- Does this mean buyers won’t have to use a buyer broker to purchase a property?
As always, the consumer chooses whether to use a real estate professional. Research has confirmed that consumers find great value in the services provided by a buyer broker, and we continue to believe it is imperative for buyer brokers to clearly articulate what services and value they are providing to consumers - How will buyer brokers get paid now?
Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals.
The types of compensation available for buyer brokers would continue to take multiple forms, including but not limited to:
Fixed-fee commission paid directly by consumers
Concession from the seller
Portion of the listing broker’s compensation
Compensation would continue to be negotiable and should always be negotiated between agents and the consumers they represent - What provisions must be included in written buyer agreements?
The written agreement must include:
1. A specific and conspicuous disclosure of the amount or rate of compensation the Participant will receive or how this amount will be determined, to the extent that the Participant will receive compensation from any source.
2. The amount of compensation in a manner that is objectively ascertainable and not open-ended.
3. A term that prohibits the Participant from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and
4. A conspicuous statement that broker fees and commissions are not set by law and are fully negotiable.
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