Let’s return to the industry-altering “NAR Settlement” that took place this year by answering a few questions specific to homebuyers and the new regulations per the case.*
1. How did the settlement affect real estate contracts?
Buyers are now required to enter into written agreements with realtors *before* touring a home with them (both in person and virtually). 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.
2. How did the settlement affect listed homes on the MLS listings database?
Agents can no longer include the buyer’s agent’s compensation in MLS listings. The buyer’s agent needs to reach out directly to the seller’s agent to discuss the terms of compensation.
3. How did the settlement affect VA loans and the prohibition on buyers paying commissions directly?
VA homebuyers can now pay for certain real estate buyer-broker fees when purchasing a home. This includes negotiating directly with their real estate agent or broker. Prior to the settlement, this was not an option for VA homebuyers. FMI: www.va.gov/home-assistance
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The bottom line: The settlement empowers consumers with additional choice and transparency when buying a home. As before, however, compensation for your agent remains fully negotiable and is not set by law. Agents who are REALTORS® are here to help you navigate the homebuying process and are ethically obligated to work in your best interest.
For more information, read this 2-page white paper “Homebuyers: Here’s What the NAR Settlement Means for You”
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* Also known as, class-action antitrust case and settlement of Sitzer/Burnett v. NAR.
Complete legal case name: Joshua Sitzer and Amy Winger, Scott and Rhonda Burnett, and Ryan Hendrickson v. The National Association of Realtors, Realogy Holdings Corp., Homeservices of America, Inc., BHH Affiliates, LLC, HSF Affiliates, LLC, The Long & Foster Companies, Inc., Re/Max, LLC, and Keller Williams Realty, Inc.