Under the recent settlement reached between the Department of Justice and the National Association of Realtors (NAR), several changes will be implemented to the rules governing the use of buyer brokers in real estate transactions. Here are some of the key changes:
1. Relator Commission Disclosure: Brokerages will be required to display the commission offered to buyer brokers in the MLS listing, allowing buyers to see the financial incentives offered to their agents.
2. Opt-Out Option: Sellers will have the option to decline the offer of a buyer broker commission, which will encourage competition and potentially lower costs for sellers.
3. No More Blanket Requirements: Brokerages will no longer be able to require that all listings include a buyer broker commission, which will give sellers more flexibility in determining their own commission structures.
4. Transparent Offer Process: Brokerages will be required to disclose all competing offers to their clients, ensuring that sellers have all the information they need to make informed decisions about accepting or rejecting offers.
5. Ban on Buyer Steering: Brokerages will be prohibited from steering buyers toward affiliated services, such as mortgages or title insurance, which will prevent conflicts of interest and ensure that buyers have greater freedom of choice.
These changes are intended to promote greater transparency and competition in the real estate market, ultimately benefiting both home buyers and sellers. The changes will take effect over the next few months, and the DOJ will monitor compliance to ensure that the new rules are being followed.
Read more about the settlement...
Realtor group settles with DOJ in effort to make broker fees clearer to home buyers.
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