Starting August 1st for us in North Carolina, and August 17th for all Realtors®, there are new practice changes and revised MLS rules that will impact how we conduct real estate transactions with buyers and sellers.

You might be wondering, "What does this all mean?" or you might not even know what I'm referring to. Don't worry; I've got you covered! These new changes stem from a lawsuit against NAR, which claimed that NAR's rules and Realtors® forced buyers to pay inflated amounts to buyer's agents. However, NAR has stated that realtor commissions have always been negotiable.

Here are the key takeaways from the NAR settlement and the new practice changes:

  1. Buyer agency compensation can no longer be advertised in the MLS. This means that buyer agents must communicate more clearly with their clients about their expected compensation and whether the buyer will be responsible for any payment. Buyer agents must also discuss with listing agents to determine if any compensation is being paid by the seller or listing firm.

  2. All states are now required to use Buyer Agency Agreements (BAA), and these agreements must be signed before viewing any home. This is a significant change, especially since only 18 states, including North Carolina, previously required buyer agency agreements. However, even though we have been using BAA's we were not necessarily having our clients sign them prior to touring homes. The purpose of these agreements is to disclose and negotiate the compensation expected by the buyer's agent.

Fortunately, for NC Realtors®, we have had buyer agency agreements in place since the early 2000s. We've been transparent and communicative with our buyers about our compensation for quite some time, so we are ahead of the curve. What we need to adjust to in NC is having the BAA signed before touring any homes and determining if any compensation is provided by the seller. There will also be a few additional forms to navigate with these new changes, but we are here to help you through any and all real estate transactions!

There are a few other thinngs that came out of the lawsuit but these two big ticket items are what are going to change the way we conduct buisness. For more information on the NAR settlement you can click this link HERE