NAR Lawsuit and MLS Rule Changes

NAR is the National Association of REALTORS®

As a result of the NAR lawsuit settlement of the various class action lawsuits across the country, MLS’s are required to implement some rule changes, including the following:

#1 – Buyer agents must now have a written agreement with their clients before they show any properties, and within this agreement, how the agent will be paid must be outlined. Buyers agents can be paid by their clients, by seller or any combination of the two.
 

#2 – Sellers, the amount of compensation that you are offering the buyer agent cannot be posted on the MLS in any way. This is now a negotiable part of the contract, like the price or any thing else on the contract. Brokers can still co-broker the commission as the way it was, it just cannot be on the MLS. Sellers can pay the buyer agent a commission but this is now negotiable between the seller, buyer and the buyer agent. There is not a rule stating the buyer must pay their own agent. Choose your buyer agent commission. Offer NO commission if you wish - the choice is yours!

When sellers pay the buyer agent a commission, we use Texas REALTORS® form TXR 2406 click here for a pre filled out form.