Who will pay Buyer's Commissions? $418 million NAR Settlement Agreement

On March 15, 2024, The National Association of REALTORS® (NAR) reached an agreement that would end litigation of claims brought of sellers related to broker commissions. Under the terms of the agreement, NAR would pay $418 million over approximately four years.

Key Points of the Agreement:

• MLS will no longer show buyer-broker compensation. Compensation could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. 
• NAR will require buyer’s agents to enter written agreements with all clients, outlining their fees and services before moving forward with any work. 

These changes will go into effect in mid-July 2024.

What It Means for Buyers and Sellers

• Commissions remain negotiable, as they have been.
• Sellers can continue to offer compensation off MLS to help make professional representation more accessible, decrease costs for home buyers to secure these services, increase fair housing opportunities, and increase the potential buyer pool for sellers. 
• If compensation isn’t offered by a seller, buyer’s agent will have to contract and arrange compensation to be paid by the buyer.
• Buyer’s agent can refuse to show properties to the buyers if compensation isn’t offered by a seller and buyers are not willing to pay that compensation from their pocket.
• At this time buyers can’t finance the commissions to a buyer’s agent. It has to be paid in cash. This can affect FHA and VA buyers who have limited cash available.

Please reach out if you'd like any clarifications or have any questions regarding new rules.

I am here to make an overwhelming experience incredibly simple!

Iryna Iniguez-Snehirova, Realtor DRE 02067232

p. 760.848.6244

email: irynainiguez@gmail.com