Ahead of the August 17 implementation of NAR’s practice changes, we wanted to provide a few reminders of actions that are required to obtain a release of liability and protect your organization from claims related to broker commissions:

  • We recommend all MLSs implement practice changes by August 17. REALTOR® MLSs (those owned exclusively by one or more REALTOR® Member Boards) must implement the changes by this date to remain in compliance with NAR policy.
  • Offers of compensation are prohibited on MLSs. Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Offers of compensation help make homeownership and the benefits of professional representation more accessible to buyers, including first-time homebuyers, increase homeownership opportunities for historically underserved groups, and benefit sellers by expanding the potential buyer pool.
  • Agents working with a buyer must enter into a written agreement before touring a home. Ahead of August 17, NAR encourages all members to address form changes and prepare to educate real estate professionals and consumers about revised forms. NAR policy does not dictate terms of buyer agreements, but NAR has created resources to assist with implementation of the settlement terms—such as tips on clarity and emphasizing consumer choice—including our “Written Buyer Agreements 101” resource, available here.

The practice changes are detailed here, and clarifying information is available in our FAQ on facts.realtor.

We also want to make you aware of several recent updates to facts.realtor including:

  • Question #70 has been updated to provide additional clarity on what it means for compensation to be “objectively ascertainable and not open-ended” in written buyer agreements.
  • Our financing FAQs have been updated and added to our full FAQ (#92-98) (Please note: these questions are no longer a standalone document).
  • We’ve added a resource with tips on Broker-to-Broker agreements.
  • The latest legal updates on the settlement and DOJ engagement can be found in our video here.

This information is only accurate as of 07/19/24. You must contact SCR for updates and changes to this information after 07/19/24 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)

This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.