As the NAR practice changes go into effect, GFWAR shares insight on what's new and what is staying the same.
For months, we’ve been talking about changes coming to the real estate industry as the result of a national settlement agreement related to broker commissions.
That time is finally upon us.
Starting on August 17, there are two important changes related to how we conduct our business.
First, offers of compensation will be prohibited from appearing on Multiple Listing Services (MLSs).
It’s important to understand that home sellers and brokers in Texas may still offer compensation off MLSs. Compensation can include a range of options, including a fixed-fee commission paid directly by consumers, concessions from the seller such as buyer closing costs, or a portion of the listing broker’s compensation.
What doesn’t change is that commissions and fees have been and continue to be negotiable.
The second change will require that agents working with a buyer enter into a written agreement before touring a home. Many REALTORS® in Texas are already requiring a written agreement. The agreement will ensure compensation is understood and agreed upon before beginning the real estate process, and it must clearly and specifically set out the amount or rate of compensation. The written agreement requirement does not require any type of professional relationship between real estate professionals and buyers.
In preparation for the changes that will go into effect on August 17, Texas REALTORS® has updated several of its forms and created new forms to comply with NAR’s rule changes. Change can be tough, but these new rules help move our industry in a positive direction. They raise the bar on transparency and fairness, and they emphasize the importance of clear, negotiated agreements that protect both agents and buyers.
Another thing that won’t change per this agreement? REALTORS® will continue to provide invaluable services, guiding clients through complex and emotional transactions with expertise and dedication.
REALTORS® have been and will always remain committed to offering exceptional service and building trusted relationships with the buyers and sellers we work with, and now with even clearer guidelines to support us.
Visit facts.realtor and texasrealestate.com/learn to learn more about the August 17 practice changes.
