Recent changes in the real estate industry have brought new requirements and guidelines that both home buyers and sellers should be aware of, particularly when it comes to how agents are compensated and the necessary agreements between agents and clients.
Key Changes to Buyer Agreements
One significant change is the introduction of mandatory written agreements between buyers and their agents. If you are a buyer working with an agent who uses a Multiple Listing Service (MLS), you must sign a written agreement before you begin touring homes, whether in person or through a live virtual tour. This agreement outlines the services your agent will provide and the compensation they will receive, ensuring transparency and mutual understanding from the outset.
It’s important to note that this written agreement is not required if you are simply attending an open house or inquiring about an agent’s services without committing to a home tour. However, once you decide to actively work with an agent and start viewing properties, the written agreement becomes essential.
Changes in Communication About Compensation
Another key update is the restriction on how and where real estate professionals can communicate offers of compensation. Offers of compensation can no longer be included on MLS platforms. However, sellers can still offer compensation off an MLS, and they can also offer buyer concessions through an MLS, such as covering buyer closing costs.
What Buyers and Sellers Should Keep in Mind
As these changes take effect, it’s crucial for both buyers and sellers to be informed:
- For Buyers: Ensure you understand the services your agent will provide and their compensation by signing a written agreement before any home tours.
- For Sellers: Be aware that while offers of comp
- ensation can no longer be communicated via MLS, you can still make such offers off an MLS and offer buyer concessions on an MLS.
- For Both: Remember that agent compensation remains fully negotiable. It’s advisable to discuss all terms, services, and the necessity of written agreements with your agent before proceeding.
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