New Nationwide Residential Real Estate
Policies and Procedures Are Now In Effect

As of August 17, 2024, there are several new nationwide policies and procedures in place for residential real estate relationships & transactions, including:

Written Contracts Between Agents & Buyers Are Now Mandatory

• Agents are now required to have every buyer sign a written contract BEFORE being allowed to show them any properties.
• The contract must specify how much the prospective buyer is agreeing to pay their agent
• Buyer agent compensation may be expressed as a percentage or as a flat dollar amount.

Previously, a buyer was only asked to sign a few required disclosures prior to viewing homes but now, a buyer MUST sign a contract with their real estate agent before being able to view homes.

Who Pays The Buyer Agent Fee?

• Sellers are no longer required to offer compensation to buyer’s agents.
• Sellers may or may not offer compensation to buyer’s agents.
• Buyers can negotiate with their buyer agent regarding how much they are willing to pay.
• Or buyers can negotiate with sellers by including a contingency in their offer which requires the payment of the buyer agent’s fee as a “seller concession”.

Previously, a buyer’s agent’s commission was determined exclusively by the seller. Under the new policies & procedures however, that responsibility shifts to the buyer, who can now discuss compensation directly with the agent who is representing them (the buyer agent).

Buyer Agent Compensation Cannot Be Published On MLS.

• Brokerages can no longer include information about buyer agent compensation on any NAR-affiliated multiple listing service (MLS).
• Sellers & brokerages can communicate buyer agent compensations off-line (off the MLS).
  (i.e. verbally, in emails or texts, and even on the brokerage’s own website)

Important Financing Note

• If a buyer agent’s fee is paid directly and separately to a buyer’s broker by a buyer and it is not included in the purchase price, that fee may not be able to be included in the home financing (the mortgage).