Article 16
REALTORS® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with clients. (Amended 1/04)
Standard of Practice 16-16
REALTORS®, acting as subagents or buyer/tenant representatives or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing broker’s offer of compensation to subagents or buyer/tenant representatives or brokers nor make the submission of an executed offer to purchase/lease contingent on the listing broker’s agreement to modify the offer of compensation. (Amended 1/04)
SCR120 is the Compensation Agreement that can be agreed and executed by the payor and the payee (e.g., Seller and Buyer Brokerage).
SCR310 "residential contract" has a seller paid buyer’s transaction costs with fill-in-the-blank for the following buyer’s transaction costs:
6. TRANSACTION COSTS: A. TRANSACTION COSTS Unless otherwise agreed upon in writing, Buyer will pay Buyer’s transaction costs and Seller pay Seller’s transaction costs. 1) Buyer’s transaction costs include all costs and closing costs resulting from selected financing, pre-paid recurring items, insurance (including but not limited to mortgage insurance, title insurance lender/owner, flood, insurance, and hazard insurance) discount points, interest, non-recurring closing costs, title exam, FHA/VA allowable costs, fees and expenses of Buyer’s attorney, contractually required real estate broker compensation, and the cost of any inspector, appraiser, or surveyor.
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No. A buyer can always ask their buyer broker to make it a term of the purchase offer that the seller pay certain compensation to the buyer broker.
Standard of Practice 16-16 prohibits a REALTOR® from attempting to modify the terms of a listing agreement through the terms of an offer because the listing agreement is a contractual matter between the seller and the listing broker. However, the seller and the listing broker may independently choose to amend the listing agreement or take any other action they deem appropriate based on the seller’s negotiations with the buyer. Standard of Practice 16-16 also prohibits a REALTOR® from delaying or withholding delivery of a buyer’s offer while attempting to negotiate a buyer broker compensation. Get more facts about NAR’s settlement agreement at facts.realtor.
The National Association of REALTORS® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.
Posted by: Byron King on 04/29/24 (This information is only accurate as of 04/29/24. You must contact SCR for updates and changes to this information after 04/29/24 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.