NAR Policy
The National Association of Realtors (NAR) recently implemented significant policy changes that took effect on August 17, 2024, reshaping agency practices in residential real estate. These changes are designed to enhance transparency and accountability for both buyers and agents. Here's an overview of the key updates:
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Elimination of Buyer Broker Compensation Offers in MLS: The Multiple Listing Services (MLS) no longer include fields where listing agents can offer compensation to buyer brokers. This change underscores the need for clear, upfront agreements between agents and clients regarding compensation.
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Mandatory Written Buyer Agreements: Agents must secure a signed written agreement with a buyer before touring properties. This agreement defines the scope of services the agent will provide and specifies compensation terms, ensuring that buyers fully understand their agent’s role and the associated costs.
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Adjustments to Listing Agreements: Listing agreements now emphasize that commissions are negotiable. Sellers can decide whether to contribute to a buyer’s agent’s compensation, which can also be negotiated as part of a purchase offer.
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Commission Transparency: These changes are intended to provide buyers with more visibility into broker fees, fostering informed decision-making and reducing potential conflicts.
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Educational Efforts for Brokers and Buyers: The NAR is encouraging brokers to educate clients about the new rules and promote informed choices in real estate transactions. While some brokers have expressed uncertainty about enforcement and compliance, the aim is to clarify processes for all parties involved
