Dear Members –
We appreciate how thoughtfully our membership has navigated these early days of change while we collectively wait for what comes next. We’ve witnessed a thoughtful sharing of ideas across brokerages and a general sense of all being in this moment together.
As we continue to await the final terms of the NAR settlement, then its approval through the Department of Justice, we can begin parsing a few elements of what our new practice will be going forward.
As a point of clarification, the Boards and Staff of TSBOR and TSMLS will function to provide you with maximum information to ensure comprehension of the changing landscape and to ensure that we are collectively in compliance with any new rules. The methods of incorporating these changes into your practice must come from a brokerage level.
At a minimum, we can reasonably assume two fundamental changes will be made:
- Buyer-side commissions will be determined by Buyer and agent via a Buyer’s Broker Agreement form prior to commencing activities that may include touring property. This fee may be paid by Seller, Buyer or a combination of the two.
- Listing agents will not be able to market any cooperating broker fee in MLS; rather any such incentive may be ratified within the offer and acceptance process.
While these changes may feel abrupt, the only element that is an entirely new concept is the absence of confirmation for any buyer-agent compensation in MLS.
The target date for implementation of these changes is July 15, 2024, subject to government approval of the terms of the settlement. We strongly recommend that all brokerages and agents begin implementing elements, including the Buyer Broker Agreements, sooner rather than later, even for properties where commission is currently identified, to begin conditioning to our new reality.
We will continue to keep you updated as we learn more.