Dear Valued Member,
The National Association of REALTORS® (NAR) has reached a proposed agreement to resolve the nationwide claims brought by home sellers. The settlement is subject to court approval, which likely will not occur for several months.
The agreement would resolve claims against NAR, all state and local REALTOR® associations, all association-owned MLSs, and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or less.
You can read the proposed settlement agreement in its entirety
here. The details relating to the anticipated changes in practice (starting with paragraph H), can be found
here.
Key Points:- One of the biggest changes brokers and agents can expect is the removal of the “offer of compensation” field in the MLS and the general prohibition of the offering of any buyer broker commissions on the MLS.
- Brokers and agents will have to negotiate compensation directly with their clients although offers of cooperative compensation are still permissible from the listing brokerage.
- Additionally, the proposed settlement agreement will require that all REALTOR® MLS Participants working with a buyer enter into a written agreement detailing the terms of representation such as the services provided and the cost for those services before any buyer services are provided.
The Commonwealth of Pennsylvania added buyer agency to their licensing statute in 1999 and has had buyer agent documents and forms in place since then. Multiple forms allow both listing agents and buyer agents to explain their value to clients and to negotiate fees among the various participants in a transaction.
Any required rule changes are expected to be effective in mid-July 2024. The Pennsylvania Association of REALTORS® (PAR) will be working with the Standard Forms Committee as well as other internal groups over the next few months to review their forms and practice advice to ensure they reflect the new NAR rules as they are made available.
Below are resources we have curated from NAR and PAR aimed at providing comprehensive updates regarding the implications of this settlement:
While there are still a considerable number of unknowns, Tri-County Suburban REALTORS® is committed to working closely with NAR and PAR in order to navigate next steps to ensure a seamless transition. Tri-County Suburban REALTORS® will plan training sessions and share any educational resources as they become available. While this settlement will cause changes in our industry, we are confident that our members will meet these changes with persistence and continue to provide valuable services to the consumer.
Michael Maerten, Chairman of the Board
