You probably caught wind of the lawsuit involving the National Association of Realtors (NAR). It’s stirred up some talk in the real estate circles, and it’s got both buyers and sellers wondering what the ripple effects might be.
Here’s the gist: The lawsuit took aim at certain practices within the NAR, particularly how commissions are structured in real estate transactions. It’s sparking discussions about transparency and fairness in the industry.
The California Association of Realtors (CAR) has been ahead of the curve, and transparency is top of the list.
Now, you might be wondering, “How does this affect me?”
Well, for buyers, it could mean more clarity on how their agent is getting paid. Usual practice is for the seller and listing Realtor to agree on a commission amount at the time of listing the seller’s property.
The listing brokerage then has typically shared the commission with the buyer’s agent, stating the percentage in the MLS. There was no requirement to tell the buyers what the commission was since they were not involved in paying that commission.
Because of the lawsuit, the buyer/broker agreement was created.
The buyer/broker agreement is essentially a contract between a prospective homebuyer and a real estate broker. It outlines the terms and conditions under which the broker will represent the buyer in their quest to purchase a property.
Think of it as a partnership agreement where both parties agree to work together toward finding the right home.
It’s still early days in the legalities, and we’ll have to see how things play out. In the meantime, it’s always a good idea to stay informed and maybe even have a chat with your local real estate agent about any changes or updates in the industry.
After all, knowledge is key, especially when it comes to something as big as buying or selling a home.
Karen Domnitz is a Realtor, DRE#00897503, with Century 21 Affiliated and vice president of Ramona Real Estate Association, RREA.org