National Association of Realtors practice changes
Real estate agents who use and list properties for sale on a Multiple Listing
Service (MLS)—a local marketplace used by real estate professionals (both buyer
brokers and listing brokers) to share information about inventory in a particular
area—will be required to enter into written agreements with buyers before touring a
home. Those written agreements must include:
• A specific and conspicuous disclosure of the amount or
rate of compensation the real estate agent will receive or
how this amount will be determined.
• Compensation that is objective (e.g., $0, X flat fee, X
percent, X hourly rate)—and not open-ended (e.g., cannot
be “buyer broker compensation shall be whatever the
amount the seller is offering to the buyer”).
• A term that prohibits the agent from receiving
compensation for brokerage services from any source that
exceeds the amount or rate agreed to in the agreement
with the buyer; and
• A conspicuous statement that broker fees and
commissions are fully negotiable and not set by law.
The National Association of Realtors has long encouraged its members to use written
agreements with buyers because they help consumers understand exactly what
services they have agreed to, the roles and responsibilities, and the amount. For this
reason, several states already have laws requiring buyer agreements.
There are also changes to how and where real estate professionals may communicate
with each other about offers of compensation. These offers are no longer allowed on
Multiple Listing Service (MLS) platforms. Sellers can still offer compensation off an MLS.
Sellers can offer buyer concessions on an MLS (for example—concessions for buyer
closing costs).
Things to know as a home buyer or seller:
• If you are a buyer and your agent is using an MLS, you will need to sign a
written agreement with your agent before touring a home so you understand
exactly what services will be provided, and for how much.
• Written agreements are required for both in-person and live virtual home
tours.
• You do not need a written agreement if you are just speaking to an agent
at an open house or asking them about their services.
• Agent compensation for home buyers and sellers continues to be fully
negotiable.
• When finding an agent to work with, ask questions about their services,
compensation and these written agreements.
