Today marks a significant shift in the real estate industry, following a federal lawsuit settlement that introduces new regulations for brokers. These changes, aimed at increasing transparency and fairness, are effective immediately. Here are the top three changes brokers must adhere to:
1. Removal of Compensation with Listings
Brokers are no longer allowed to offer compensation through MLS listings. Instead, the compensation must be predetermined either by buyer funds or through a written agreement from the seller, established outside of the MLS and prior to submitting offers. This change aims to eliminate potential conflicts of interest and ensure clearer terms for all parties involved.
2. Written Buyer Agreements Required
Any broker working with a buyer must have a signed contract before beginning their work and showing homes. This contract must include a specific rate of compensation, not just an open-ended agreement. This requirement ensures that buyers are fully aware of and agree to the compensation terms before any services are rendered.
3. Prohibition on Exceeding Compensation
Brokers are prohibited from renegotiating or changing commission terms to receive compensation exceeding the amount specified in the initial signed contract, regardless of the source, including the seller. This rule is designed to prevent unexpected commission increases and ensure that all compensation terms remain consistent and transparent from the outset.
For more information on how these changes might impact you, comment “REAL” below, and I’ll DM you with further details.
