Post NAR Settlement Questions

Key Changes for Homebuyers

The recent NAR settlement has resulted in several significant changes that directly benefit homebuyers. Here's a breakdown of what these changes mean for you:

• Written Agreements: Before touring a home, you must now sign a written agreement with your agent. This agreement should clearly outline the services provided, the agent's compensation, and any other relevant terms.
• Compensation Transparency: The agreement must include a specific and conspicuous disclosure of the agent's compensation, which should be objective (e.g., a flat fee, a percentage, or an hourly rate) rather than open-ended.
• No Hidden Fees: The agent is prohibited from receiving compensation from any source that exceeds the amount agreed upon in the written agreement with you.
• Negotiable Fees: Broker fees and commissions are fully negotiable and not set by law.

What Remains the Same

• Agent's Role: REALTORS® remain committed to helping you navigate the homebuying process and are ethically obligated to work in your best interest.
• Negotiable Compensation: Compensation for your agent remains fully negotiable.
• Your Choices: You have a range of choices when buying a home, and your agent can help you understand these options to make the best decision for your needs.

In Summary

The NAR settlement has increased transparency and fairness for homebuyers. By understanding these changes and asking questions about compensation and services, you can make informed decisions throughout the homebuying process.