Navigating the Real Estate Practice Changes: Essential Resources for REALTORS® and Consumers

As part of the National Association of REALTORS® (NAR)’s commitment to assist both REALTORS® and consumers in navigating the forthcoming real estate practice changes, NAR is pleased to announce the publication of several new consumer-focused resources. These tools are designed to support NAR members as they adapt to and help consumers understand the evolving real estate landscape. All resources are available on facts.realtor, the NAR dedicated center for information on the settlement.

Change Info:

August 17, is the date when the changes to the real estate industry came into effect. These changes - the result of a national settlement agreement related to broker commissions - altered industry practices across the nation. There are two major topics associated with these changes.

First, offers of compensation will be prohibited from appearing on REALTOR®  owned Multiple Listing Services (MLSs).

It’s important to understand that home sellers and brokers may still offer compensation off MLSs. Compensation can include a range of options, including a fixed-fee commission paid directly by consumers, concessions from the seller such as buyer closing costs, or a portion of the listing broker’s compensation.

What doesn’t change is that commissions and fees have been and continue to be negotiable.

The second change will require that agents working with a buyer enter into a written agreement before touring a home. The agreement must clearly and specifically set out the amount or rate of compensation. The written agreement requirement does not require any type of professional relationship between real estate professionals and buyers.

Change can be tough, but these new rules help move our industry in a positive direction. They raise the bar on transparency and fairness, and they emphasize the importance of clear, negotiated agreements that protect both agents and buyers. Please click on the links below, which include sharable infographics that will help you educate consumers on the changes, how compensation is determined, and the service that REALTORS® provide to consumers.

Available Resources:

1. Fact Sheets for Homebuyers and Home Sellers:

   • These fact sheets outline what homebuyers and sellers can expect after August 17 and emphasize the value that REALTORS® provide in these transactions. Separate resources are available for buyers and sellers to ensure tailored guidance.
     • Homebuyers Fact Sheet
     • Home Sellers Fact Sheet
     • Consumer Guide: Negotiating Written Buyer Agreements
     • Buying Your First Home

2. Broker’s Guide to Upcoming Practice Changes:

   • This comprehensive guide includes slides that provide an overview of the settlement, details on corresponding practice changes and implementation, and advice on helping consumers understand what these changes mean for their homebuying or selling transactions.
     • Understanding & Navigating Upcoming Practice Changes- Slideshow

3. Template Compensation Disclosure for Active Listing or Buyer Agreements:

   • Effective August 17, this template disclosure can be used for active agreements that need to be amended or supplemented with a separate disclosure. It clearly states that compensation is not set by law and is fully negotiable. For detailed information on amending active agreements, refer to FAQs #52, #53, #71, and #72 on facts.realtor.
     • Template Disclosure
     • FAQs #52, 53, 71, & 72
4. 6 Items to Consider Before Practice Changes Take Effect

   • These are some of the business decisions you may need to make as the date to implement practice changes approaches.

     • See article from NAR
5. Consumer Guide Series

   • NEW: Multiple Listing Services

   • Seller Concessions
   • Why Am I Being Asked to Sign a Written Buyer Agreement?
   • Open Houses and Written Agreements
   • REALTORS’® Duty to Put Client Interests Above Their Own
   • What Veterans Need to Know About Buying a Home
   • Offers of Compensation
   • Negotiating Written Buyer Agreements

Additional Resources:

• NAR News & Resources
  

  • NAR Reaches Agreement to Resolve Nationwide Claims Brought by Home Sellers

  • Settlement Overview
  • Settlement Fact Sheet

  • Competition.realtor

  • The Facts for REALTORS®

  • Litigation FAQ

  • Financing FAQs (updated 4.16.24)

  • Accredited Buyer’s Representative (ABR) Course offered for free in 2024(a $295 value)

  • Correcting the Record: NAR Does Not Set Commissions

  • VIDEO: Update from NAR President Kevin Sears (3.21.24)
  • VIDEO: Settlement Briefing between NAR President Kevin Sears and Chief Legal Officer Katie Johnson(3.22.24)
  • The Truth About the NAR Settlement Agreement (3.22.24)
  • Settlement Agreement Facts Toolkit (updated 4.5.24)
  • PODCAST: A Conversation with NAR President Kevin Sears –60 minutes, Real Estate Insiders Unfiltered Podcast (4.9.24)
  • Summary of MLS Policy Changes (5.3.24)
  • New Practice Changes Underway (5.5.24)
  • Settlement FAQs – Updated (5.5.24)
  • NAR Settlement Timeline (5.7.24)
  • PODCAST: What Does NAR’s Settlement Mean for Your Business? 20 minutes(5.9.24)
  • PODCAST: A New Opportunity to Provide Value to Buyers –16 minutes (5.9.24)
  • PODCAST: Refocus on Using Your Voice for Your Clients, Industry –20 minutes (5.9.24)
  • VA Signs Temporary Suspension on Buyer Agent Payment Plan (5.21.24)
  • VIDEO: Next Steps in the Settlement Process (5.29.24)
  • VIDEO: Who is Covered and Who Needs to Opt In (5.29.24)
  • VIDEO: Understanding the Effective Date of Practice Changes (5.29.24)
  • Communicating Offers of Compensation (6.5.24)
  • VIDEO: Update from NAR President Kevin Sears (6.21.24)

• Georgia Resources
  • Sage Advice for Georgia REALTORS® Regarding Compensation
  • A Brief History of Buyer Brokerage Agreements in Georgia
  • Consumer Guide: Written Buyers Agreements
  • Consumer Guide: Open Houses and Written Agreements
  • Consumer Guide: REALTORS®' Duty to Put Clients' Interest Above Their Own
  • Compensation, Commission, and Concessions
  • 8 Questions to Shed Light on REALTOR® Compensation
  • 9 Ways a REALTOR® Helps Buyers
  • 10 Reasons to Sell with a REALTOR®
  • Midyear Changes to the GAR Contract Forms– article by Seth Weissman, GAR General Counsel (6.4.24)
  • PLUGGED IN INFOGRAPHIC: The NAR Settlement: How Does it Affect You? (June 2024)
  • PLUGGED IN INFOGRAPHIC: REALTORS® at Your Service(May 2024)
  • VIDEO: GAR General Counsel Seth Weissman Discuss Four Important Points for REALTORS® Should Understand after the NAR Settlement (4.5.24)
  • “The New World of Real Estate Commissions” – article by Seth Weissman, GAR General Counsel (3.26.24)
  • GAR President Jim Barner’s Letter to GAR Members (3.22.24)

 

Please send your questions to settlement@garealtor.com 

The GAR Legal Department is monitoring this email and answering questions as the come in.