Starting August 17th, 2024, homebuyers need to sign a Buyer’s Purchase Agreement with a Buyers Real Estate Agent stating the homebuyers will pay the homebuyers real estate agent. Starting August 17, 2024, homebuyers must enter into a written agreement with their buyer’s real estate agent before seeing a house. This is part of the settlement agreement with the National Association of Realtors (NAR), which aims to make this relationship more transparent and formal between buyers and agents.

Key Points About the New Requirement:

Written Agreement:

Before touring homes in person or online, homebuyers must sign a Buyer’s Purchase Agreement with their realtor. The document outlines the agent’s services and how they will be paid​.

Compensation Disclosure:

An agreement should clearly state what compensation the real estate agent representing the buyer will receive. This happened indirectly through the MLS (Multiple Listing Service), which often showed seller compensation offers to buy agents​.

No More Compensation Offers in MLS:

The new rules ban real estate listing offers for compensation in MSL listings. This means buyers and their agents must negotiate directly without involving a third party like the MLS​.

What It Means for Home Buyers and Agents:

More Transparency: Clients now know exactly what service and costs are involved from their agency.

Formalized Relationships: Such requirements establish a more professional working relationship between clients and agencies, leading toward accountability on both sides

Flexibility in Terms of Agreement: Agents can offer different provisions, such as exclusive vs. non-exclusive agreements and contract duration, among others, but compensation should always be objectively ascertainable”​.

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• This discussion was modified 5 months, 4 weeks ago by  Gustan Cho.