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Palm Shores, FL (August 15, 2024) - Space Coast Association of REALTORS reminds members, real estate professionals, and consumers that on August 15, 2024 the practice changes following the National Association of REALTORS Settlement Agreement that would resolve claims brought on behalf of home sellers related to broker commissions will be implemented across the country.
REALTOR MLSs (those owned exclusively by one of more REALTOR Associations) - must implement the changes by this date to remain in compliance with NAR policy.
Under the settlement, the following practice changes will take effect:
- Offers of compensation will be prohibited on the Multiple Listing Service (MLSs). Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Offers of compensation help make homeownership and the benefits of professional representation more accessible to buyers, including first-time homebuyers, increase homeownership opportunities for historically underserved groups, and benefits sellers by expanding the potential buyer pool, and ensuring they receive the best offer possible for their property.
- Agents working with a buyer will enter into a written buyer agreement before touring a home. The practice changes do not require an agency agreement or dictate any type of relationship. Resources are available to assist with the implementation of the settlement terms - such as tips on clarity and emphasizing consumer choice and a "written buyer agreement 101" resource.
"Selling and buying a home is typically one of the most significant financial transactions individuals will ever engage in. REALTORS, as trusted advisors, possess the most precise data and are prepared to assist you ethically throughout your homebuying process, ensuring you make decisions that align with your needs," stated Kerry Ramage, President of the Space Coast Association of REALTORS.
What do these changes mean for home sellers?
- 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 conspicuously disclose to you and obtain your approval for any payment or offer of payment that a listing broker 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.
- If you choose to approve an offer of compensation, there are changes to how this can happen.
- You as the seller can still make an offer compensation, but your agent cannot include it on a Multiple Listing Service (MLS)—MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
- Your agent can advertise your listing via off-MLS platforms such as social media, flyers and websites.
- You as the seller can still offer buyer concessions on an MLS (for example, concessions for buyer closing costs).
What do these changes mean for homebuyers?
- You will sign a written agreement with your agent before touring a home.
- Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much.
- The buyer agreement must include four components concerning compensation:
- A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.
- Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”).
- A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and,
- A conspicuous 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 but the offer cannot be shared on a Multiple Listing Service (MLS)— MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
- You can still accept concessions from the seller, such as offers to pay your closing costs.
Here is what the settlement doesn’t change:
- Agents who are REALTORS® are here to help you navigate the process of selling your home and are ethically obligated to work in your best interest.
- Compensation for your agent remains fully negotiable, and if your agent is a REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear and transparent discussions with you about compensation. When finding an agent to work with, ask questions about compensation and discuss what you would like to offer buyers.
- You have choices. Work with your agent to understand the full range of these choices when selling your home, which will help you make the best possible decision for your needs.
"Since March, the Space Coast Association of REALTORS has ensured our REALTOR members stay informed about the settlement announcement and the unfolding timeline. We have organized a range of forums and training sessions to guide our members through these adjustments and get them ready. According to Lindsey Ruschak, CEO of the Space Coast Association of REALTORS, our members are knowledgeable and ready for the upcoming practice changes set to take effect on August 15, 2024."
For National Association of REALTOR members, the practice changes are outlined in detail here. and detailed information is available in NARs FAQ. Please visit facts.realtor for the latest updates on the settlement and practice changes.
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About the Space Coast Association of REALTORS®
Since 1959, the Space Coast Association of REALTORS® has been a professional trade association that provides services to our local REALTOR® community. Our membership base is comprised of more than 5,500 REALTORS® and Business Partner members that service Brevard County and adhere to a strict Code of Ethics when working with one another and the general public. The Space Coast Association of REALTORS® takes an active part in community programs and pursues projects our members support to further real estate interests. The protection of private property rights is always our top priority.
Association Vision: Space Coast Association of REALTORS® is the trusted voice of real estate in our community.
Association Mission: Space Coast Association of REALTORS® exists to support our members’ success as real estate professionals while advocating for private property rights and the ethical practice of real estate.
Values: Membership // Professionalism // Leadership // Advocacy // Outreach
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