National Association of Realtors

This is Tammy Sankey Fox - Your Central NC Realtor and Owner of Blu Diamond Real Estate powered by Keller Williams Central! By now many of you have probably heard about the National Association of Realtors (NAR) lawsuit proposed settlement related to Broker paid commissions. 

Unfortunately, the media, like so many things today, is reporting vast inaccuracies about the proposed settlement. I believe consumer awareness is an important part of real estate for everyone involved.  Let me break it down for you!

2 Biggest Inaccuracies Reported By The Media

1.   NAR requires all Realtors to charge 6%.

In my 27 years of real estate, NAR has never required me or anyone else to charge a particular commission fee.  There are many factors we use to determine what we should charge.  Commissions have been and will continue to be NEGOTIABLE!

2.  Sellers are no longer allowed or need to pay the buyer agent commission.

NAR does not regulate commission on either side of transactions.  Sellers can continue to offer and pay for buyer’s agent’s compensation through negotiation and consultation with real estate professionals.

What is Next

The settlement, which is subject to court approval, states that NAR has agreed to 2 major changes should the settlement be approved.

1.  NAR has agreed to replace a rule in our Multiple Listing Services (MLS), which was implemented in the 1990s in response to calls from consumer protection advocates for buyer representation, and replace it with a new one prohibiting offers of broker compensation on the MLS.  After the new rule goes into effect, listing brokers and sellers can continue to offer compensation for buyer broker services, but such offers will not be communicated through MLS.

2.  Real Estate Agents will be required to have an executed Buyer Agency Agreement with a Buyer prior to showing a house.  NAR has long encouraged its members to use written agreements because they help consumers understand exactly what services and value will be provided, and for how much.  

In NC, we already have a buyer’s agency agreement that has been in place for several years.  That agreement was not required to be completed until prior to the time of offer.  Now it will be required prior to showing a home.  That agreement already shares how much the cost is for the services of the buyer’s agent.  

Likewise, NC has a listing contract in place for several years that clearly outlines the actual costs to list the property.  In addition, that agreement states clearly how much of the fee will be paid to the buying agent.  These are not new forms or procedures for NC, they already exist.