The National Association of Realtors (NAR) have implemented new rules with regards to how commissions are paid to brokers and who is responsible for paying these commissions. Below is a summary of the changes, which went into effect on August 17.

If you are a Homebuyer (click for more details)

• You will sign a written buyer agreement with your agent before touring a home.

• The buyer agreement will include a disclosure of the amount or rate of compensation the real estate agent will receive and a 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.

If you are selling your home (click for more details)

• You still have the choice of offering compensation to buyer brokers. You may consider doing this as a way of marketing your home or making your listing more attractive to buyers.

• Your agent must disclose to you and obtain your approval for any offer of payment that they will make to another broker acting for buyers.

• This disclosure must be made to you in writing in advance of any payment or agreement to pay another broker acting for buyers, and must specify the amount or rate of such payment.

Have questions? We are available to help you understand these changes. Give us a call today.