What is all of the talk about August 17th?
What is all of the talk about August 17th?
As a result of the Sitzer/Burnett lawsuit settlement between NAR and the plaintiffs, the National Association of Realtors will be implementing some changes to the real estate buying process effective August 17, 2024. There are really 2 key points for buyers to understand from the policy changes.
The first change is that all buyers will need to sign a Buyer Brokerage Agreement to view any homes with a Realtor going forward. This agreement has always been available but rarely used. The agreement outlines the responsibilities of the Realtor and Buyer. It will include the term of the agreement and how the real estate agent will be paid for services. A similar agreement is required when selling a home. Now, it will be required for both aspects.
The second change is how real estate agents will be paid when providing professional services to a Buyer. Previously, the commissions were determined by the agreement between the listing agency and the Seller. The listing agency would then "split" that commission with the buying agency if they found the buyer for the home. That is no longer a requirement. With the policy change, there are 3 ways a real estate professional can be paid for services rendered. The three choices would be directly from the Seller, from the listing agency, or directly from the buyer represented. It could also be a combination of the options above. The main point is the compensation amount and method for payment of services must be included in the agreement.
Of course, there are several other changes happening behind the scenes to support these new policy changes. I am sure there will be some bumps in the road as we move forward until the process is refined. If you have any questions, be sure to contact your real estate agent so they can answer those questions. As always, you can reach me at drshippeyrealtor@gmail.com or 863-521-4517. Thank you. ~ David
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