NAR Lawsuit Update
What we Know….
The NAR has reached a settlement agreement on the class action lawsuits relating to the offer of compensation rule. Details are in the link below. There is much to digest and more info and training will come out in the days ahead. For now, here are eight key points:
1. Realtors® are well positioned in Utah to continue representing buyers and sellers because of how we’ve been conducting business for the last several decades.
2. The proposed settlement is pending the court’s approval. If approved it will likely take effect sometime later in July.
3. No changes related to the listing broker’s offer of compensation on the MLS will occur until mid-July 2024 (assuming the settlement agreement is approved). Continue representing your clients as you have until then.
4. After July, no Buyer Agent Commission (BAC) may be offered on the MLS (stay tuned for more specifics dates). However, listing brokers and sellers may continue to offer compensation for buyer broker services, not on the MLS (e.g., by email, calls, texts, flyers, newsletter, etc.). Offers of compensation to the Buyer Broker are not going away – they are not illegal.
5. Brokers can publish Buyer Agent Commissions for their own listings on their own websites. Although the MLS is prohibited from publishing a BAC, the settlement allows brokers to offer a BAC on their own website for their own company listings.
6. Sellers may agree to pay buyer broker fees and seller concessions in the purchase contract. See the Real Estate Brokerage Payment Addendum. There will likely be updates to Utah forms to address seller paid buyer broker fees as well as updates to the agency agreements in the near future.
7. Written Buyer Broker agreements will be required nationwide. After July, such Buyer Broker Agreements will be required prior to touring properties with the Buyer. Utah Realtors® have been required by Utah law to use Buyer Broker Agreements for years, so this isn’t much of a change. Realtors® will need to improve their skills when representing buyers and better articulate their value just like they have done with sellers.
8. Never represent to your clients that your brokerage services are free unless you receive no compensation for those services.
In the coming days, we will be working to provide you with best practices and updates to help you be successful in this changing real estate environment. Courtesy of the Salt Lake Board of Realtors®