If you're buying or selling a home, you'll be working with a new set of rules as of August 17, 2024. According to a press release from the National Association of Realtors, offers of compensation will no longer be allowed on multiple listing services. However, "offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals."

Furthermore, says the NAR, "agents working with a buyer must enter into a written buyer agreement before touring a home."

What does this mean in practice?

An article on Bankrate says, "The biggest change is that listing agents (the age ​​​​​​​nts who represent home sellers) may no longer make offers of compensation to buy-side agents on any NAR-affiliated multiple listing service (MLS). In addition, a buyer's agent must now have a written contract with a home shopper, clearly specifying their fee, before they may show that client a house. Until now, NAR encouraged but didn't require written agreements between buy-side agents and buyers."

According to an article on CNN, "seller's agents will no longer be allowed to advertise commission fees to buyers' agents on multiple listing services that Realtors use to list and find homes for sale and to facilitate transactions." CNN quoted Tanya Monestier, a professor of law at the University at Buffalo School of Law: "By not having commission on the MLS anymore, it makes it harder to steer, because you can't just do a search for 3% commissions."

An article in USA Today explains: "Now, a seller will need to decide whether, and how much, to pay a buyer's broker. Whatever the decision, that information can no longer be included in what's known as the 'multiple listing service' or MLS, the official real estate data service used by local Realtor associations."

There may still be some confusion going forward as the new rules take effect. Give us a call and we'd be happy to explain how we work.