There is a National Association of REALTORS® proposed settlement agreement based on a class action lawsuit and related changes have already been implemented. These practice changes took effect last week. One of the biggest changes coming from this settlement agreement is the requirement for more disclosure to sellers and buyers related to real estate broker compensation. Real estate broker compensation is fully negotiable and not set by law. Contracts have all been updated to make this more clear.
Another practice change is that compensation being offered to brokers working with buyers will no longer be advertised on the MLS where homes are listed for sale. This is something that will now be discussed broker to broker based on what is outlined in the signed Exclusive Right to Sell Listing Contract. This will lead to more discussion about who will be paying a buyer broker's compensation and how much will be paid.
One of the goals of the settlement is to encourage more discussion about how real estate brokers are paid and how much they are paid in any given transaction, so please reach out if you want to discuss more or have any questions.
Thanks,
Rich
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