Changes Coming for Real Estate Professionals

With a membership of some 1.5 million, the National Association of Realtors® (NAR) is the nation’s largest trade organization.  Realtors® were involved in a staggering 90% of home sales last year.  So when NAR agreed to settle two anti-trust cases earlier this year, it was news.

NAR agreed to pay $418 million in damages … and make two major changes in the way Realtors® conduct business starting August 17, 2024.  The first change is that agents working for buyers must have their clients sign a buyer broker agreement.  NAR had long encouraged its members to have their buyer-clients sign buyer broker agreements, but as a result of the settlement that encouragement has become a requirement.  The second change is that Realtors® are no longer allowed to offer “SBC” or Selling Broker Commission as part of a listing on a Multiple Listing Service (MLS), which makes a buyer-broker agreement essential for agents working with buyers.

It remains to be seen to what extent consumers benefit from the rule changes and how these changes will impact the real estate profession.  NAR’s position is that the changes are mere tweaks to the way the profession operates.  Other commentators predict a sea change in the profession.

The experienced attorneys at Parrett Porto keep up with changes in the laws and regulations affecting real estate and we stand ready to counsel our clients with respect to their real estate transactions.  We invite you to call us for more information if you are considering selling, buying or developing property, regardless of the size.

Contact John Parese, jparese@pppclaw.com, Carl Porto II, cportoii@pppclaw.com or Michael Carbone, mcarbone@pppclaw.com