NAR Settlement - Home Buyer Change Explained

 

 

The National Association of Realtors, or NAR, Settlement has created a change on the home buyer side of things. This change is nationwide, not brokerage or state specific. Now, all buyers who would like to tour a home with their broker must sign a buyer representation agreement with their agent PRIOR to being able to see the property. In the past, a buyer could contact a Realtor and request a showing without signing this. These buyer agreements are not new. A lot of agents have used them for years. Now, however, they are mandatory with everyone.  

Going forward, the new license law requirement is that a buyer agreement must be signed PRIOR to any showing taking place. The agreement clearly outlines the compensation paid to your agent. Typically, the seller will offer payment to the buyer’s agent just like in the past so that it is easier for the buyer to buy. However, if a seller is only offering partial or no compensation, the buyer will be responsible for the remainder.  

The changes on the buyer and seller side of things may leave you with questions on how they will work in practice. I work everyday in the Dayton housing market and would be happy to discuss how it all works.