This week, we got our first look at some of the actual procedural changes we’ll see following the settlement of the NAR Commission lawsuit.
May is Inman’s commission and payroll month. We’ll sort through the noise and misinformation and provide you with the latest facts and strategies on how to prosper after a commission settlement. And find updates directly in your inbox with Inman’s new weekly digest, The Committee Chronicle.
Each week on Download, Inman’s Christy Murdoch goes deeper into the week’s hottest stories to give you the information you need to face Monday. This week: We get our first look at some of the actual procedural changes we’ll see following the settlement of the NAR Commission lawsuit.
Since we first got word that the National Association of Realtors would settle its commission-related lawsuit, we’ve been waiting and hoping for clarification on how things will work on the ground. We know we need buyer’s agreements, but what do they entail? How will compensation work? Where will commission communications come through if not from the MLS?
Now, NAR is beginning to provide some of the specific facts and figures agents and brokers need to navigate the market in the coming months. They are updating the Realtor Facts page with available settlement information, including more details about the practice changes that everyone will need to be up to speed on in the coming days.
One interesting detail revealed in the NAR’s new content is the new implementation date. The changes have been approved by the trade group’s leadership team and will take effect on August 17, 2024, according to an executive summary provided by NAR.
Extra: NAR commission settlement rules to take effect in August
Part of the reason for changing the deadline is that August is the earliest date a class notice can be issued following preliminary approval of the settlement on April 24. Final approval is currently planned for November 2024.
Under the proposed settlement agreement that has received preliminary approval, merely marketing your services to a buyer or merely speaking to a buyer on behalf of a seller (e.g., at an open house or showing a client’s listing to an unrepresented buyer) does not mean that you are updated under the NAR. Questions and answers are being “cooperated” with the buyer.
But the trade group said providing actual brokerage services to buyers – identifying potential homes, arranging showings, negotiating for buyers, presenting buyers’ offers or providing other services to buyers – is “working with buyers.” .
Alternatively, in the case where the agent is an authorized dual agent and/or in the case of a designated agent, the agent represents both the buyer and the seller but has a different agent working with both parties and he or she also works with the buyer as the seller , so a contract needs to be signed before family travel.
Don’t miss your chance to click through and learn more about Brambilla’s coverage, including:
- What does it mean to visit a house
- The difference between a written agreement and a written agency agreement
- The agreement must be clear about compensation
- What happens to active agreements before July change deadline
Extra: Zillow will offer short-term “non-exclusive” travel contracts
It’s one thing to know what’s coming, but it’s another thing to apply it to your business. It requires knowledge and strategy because you have to develop new conversations and new value propositions.
It’s critical to differentiate your services now because it gives buyers a reason to use you instead of the next buyer’s agent or listing agent on the block. Keep the right mindset, get your facts straight, and learn to communicate what makes you the only contender for top-notch buyer service.
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Christy Murdock is a freelance writer, coach, consultant and owner of Write Real Estate. Follow Writing Real Estate on Instagram and subscribe to Tomato Sauce, a weekly roundup.
