The NAR Settlement and You

HOMEBUYERS:

HERE’S WHAT THE NAR SETTLEMENT MEANS FOR YOU

Buying a home is one of the largest financial transactions most people will ever undertake. Agents who are REALTORS® are a trusted source of advice and stand ready to help you navigate your homebuying journey and make the choices that work best for you. NAR’s recent settlement has led to several changes that benefit homebuyers, and we wanted to clearly lay them out for you.

Here is what the settlement means for homebuyers:

You will sign a written agreement with your agent before touring a home.
• Before signing this agreement, you should ensure it reflects the terms you
have negotiated with your agent and that you understand exactly what
services and value will be provided, and for how much.
• The buyer agreement must include four components concerning
compensation:

a. 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.

b. 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”).

c. 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,

d. A conspicuous statement that broker fees and commissions are fully
negotiable and not set by law.

• Written agreements apply to 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.
• The seller may agree to offer compensation to your agent. This practice is
permitted but the offer cannot be shared on a Multiple Listing Service (MLS)—
MLSs are local marketplaces used by both buyer brokers and listing brokers to
share information about properties for sale.

REALTORS® are members of the National Association of REALTORS®
• You can still accept concessions from the seller, such as offers to pay your
closing costs.
These practice changes will go into effect August 17.

Here is what the settlement doesn’t change:

• Agents who are REALTORS® are here to help you navigate the homebuying
process and are ethically obligated to work in your best interest.
• Compensation for your agent remains fully negotiable, and if your agent is a
REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear
and transparent discussions with you about compensation. When finding an
agent to work with, ask questions about compensation and understand what
services you are receiving.
• You have choices. Work with your agent to understand the full range of these
choices when buying a home, which will help you make the best possible
decision for your needs.
More details about these changes and what they mean can be found at:

facts.realtor

HOME SELLERS:

HERE’S WHAT THE NAR SETTLEMENT MEANS FOR YOU

As a home seller, you have a wide range of choices when it comes to listing your
home. Agents who are REALTORS® are a trusted source of advice and stand
ready to help you navigate this complex process and make the choices that work
best for you. NAR’s recent settlement has led to several changes related to broker
commissions that benefit sellers, and we wanted to clearly lay them out for you.

Here is what the settlement means for home sellers:

You still have the choice of offering compensation to buyer brokers. You may
consider doing this as a way of marketing your home or making your listing
more attractive to buyers.
• Your agent must conspicuously disclose to you and obtain your approval for
any payment or offer of payment that a listing broker will make to another
broker acting for buyers.
• This disclosure must be made to you in writing in advance of any payment or
agreement to pay another broker acting for buyers, and must specify the
amount or rate of such payment.
• If you choose to approve an offer of compensation, there are changes to how
this can happen.
• You as the seller can still make an offer compensation, but your agent cannot
include it on a Multiple Listing Service (MLS)—MLSs are local marketplaces
used by both buyer brokers and listing brokers to share information about
properties for sale.
• Your agent can advertise your listing via off-MLS platforms such as social
media, flyers and websites.
• You as the seller can still offer buyer concessions on an MLS (for example,
concessions for buyer closing costs).
These settlement practice changes will go into effect August 17.

Here is what the settlement doesn’t change:

Agents who are REALTORS® are here to help you navigate the process of
selling your home and are ethically obligated to work in your best interest.
• Compensation for your agent remains fully negotiable, and if your agent is a
REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear
and transparent discussions with you about compensation. When finding an
agent to work with, ask questions about compensation and discuss what you
would like to offer buyers.
• You have choices. Work with your agent to understand the full range of these
choices when selling your home, which will help you make the best possible
decision for your needs.

More details about these changes and what they mean can be found at:

facts.realtor

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HOMEBUYERS:

Here is what the settlement means for homebuyers:

Here is what the settlement doesn’t change:

HOME SELLERS:

Here is what the settlement means for home sellers:

Here is what the settlement doesn’t change:

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