Department of Justice (DOJ) and the National Association of REALTORS® (NAR) reached a settlement agreement to end an antitrust investigation into NAR's role in buyer agent compensation. The settlement included provisions such as making compensation offered to buyers' agents publicly available and requiring MLSs and brokerages to provide consumers with all properties that meet their criteria. NAR also submitted proposed rule changes to the DOJ in compliance with the agreement. See the bottom of this page for the 13 pages of the Buyer Representation and Broker Compensation Agreement

At the end of this article are your “next steps.”

Home buying is one of the most significant financial transactions most people will ever undertake. Agents who are REALTORS® are a trusted source of advice and stand ready to help you navigate your home buying journey and make the choices that work best for you. NAR’s recent settlement has led to several changes that benefit homebuyers, and we wanted to lay them out for you clearly.

Here is what the settlement means 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:

1. 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.

2. 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”).

3. 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,

4. 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..

These practice changes will go into effect August 16.

1. Agents who are REALTORS® are here to help you navigate the homebuying process and are ethically obligated to work in your best interest.

2. 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 understand what services you are receiving.

3. You have choices. Work with your agent to understand the full range of these choices when buying a home, which will help you make the best possible decision for your needs.

What are your next steps?

• Book an appointment with me to discuss the impact of these new rules for you. Either use the “Contact Us” tab at the top of this page OR use the Calendly link at the bottom of this and every page on my site. These new forms are NOT OPTIONAL. No broker or agent can work with you without this formed signed by you. Our appointment will be low stress, low key, and I will answer your questions so that you’re completely comfortable with your options. I will not ask you to sign anything, until and unless you are!

• Before that appointment, write down any questions you want addressed

• It is your RIGHT to be deeply inquisitive; these new rules evolved to bring clarity, transparency, and to help buyers and sellers understand their obligations, and the brokers obligations.

• The National Association of Realtors put together this guideline for sellers and this page for buyers

• Lastly, when you contact me, ask for a copy of the new form you must sign; regardless of which Realtor you choose, or review the following images OR download a copy of the forms here