The real estate industry is constantly evolving, yet the recent regulations concerning compensation transparency and buyer agreements require clearer clarification. Here are the top three questions we are asked.
Q. What is the most significant change in the NAR ruling regarding buyer representation?
A. The biggest change is that buyers must now enter into a written representation agreement with their agent before viewing any properties, whether in-person or virtual. This ensures transparency and formalizes the relationship between buyers and their agents.
Q. How does the new NAR ruling affect commission payments for buyer agents?
A. Under the new rules, sellers are no longer allowed to advertise compensation to buyers agents through the MLS. This shifts the responsibility for compensating buyer agents more directly to the buyers themselves, although negotiations can still occur to have the seller cover these costs. As well, a seller can still choose to offer compensation to the buyer agent.
Q. Can a buyer negotiate to have the seller pay the buyer agent's commission?
A. Yes, buyers can still negotiate with the seller to cover the buyer agent's commission as part of the overall purchase agreement. Ultimately, both parties must mutually agree.