Buying a home is one of the largest financial transactions in a person's life. Below are facts about NAR's proposed settlement and how the changes that took effect on August 17 will impact home buyers and sellers:

What HAS NOT Changed:

• Compensation remains fully negotiable by buyers, sellers, and their agents.

• When finding an agent to work with, buyers and sellers should ask questions about compensation and understand what services they are receiving.

• If sellers have not offered compensation, buyers can request in their offer that sellers compensate the buyer's broker. If the seller is not paying buyer broker compensation, the buyer will be responsible for paying their agent, if agreed to in the written agreement.

• Buyers do not need a written agreement when just speaking to a listing agent at an open house or asking them about their services.

• Current regulations do not allow agent commission payments to be financed as part of a mortgage.

• Agents who are REALTORS® are ethically obligated to work in the client's best interest.

• Sellers can still offer, and buyers can still accept, concessions such as offers to pay the buyer's closing costs.

• The changes further empower consumer choice through transparency.

What HAS Changed:

• Buyers must sign a written agreement with their chosen broker before touring a home, whether in person or virtually. The agreement will reflect the terms they have negotiated with their agent, including what services will be provided, for how much, and how the agent will be compensated.

• If there is an offer of compensation to a buyer's broker from a listing broker or the seller, the seller must approve the specific amount or rate of payment in writing.

• The listing broker or the seller may offer compensation to the buyer's agent, but there are limitations on how that offer can be marketed. Brokers can no longer communicate offers of compensation on a Multiple Listing Service (MLS).

NAR Website - Data Source