Last year, in response to the NAR lawsuit, significant changes were introduced to the standard business practices that realtors had long followed. Lets discuss what homeowners and buyers can expect from these changes.
Change is a word that stirs many emotions; excitement, fear, anticipation, and sometimes discomfort. In a world that never slows down, change is inevitable. It can be good or bad, but one thing is certain: it often brings uncertainty.
When the National Association of Realtors (NAR) lawsuit began reshaping standard real estate practices, media coverage focused on the uncertainty, making it difficult to understand what was really happening. My goal is to remove that uncertainty and show you that change can also mean improvement.
Here’s what you can expect in 2025:
1. Buyers Agency Agreements
-Buyers must now sign a Buyer Agency Agreement before touring a property with an agent. This ensures they understand the agent’s responsibilities, fees, and any limitations on the properties the agent can represent.
-The agreement can be as short as one day or as long as six months, depending on the terms both parties agree upon. It can also specify representation for only certain properties.
-Buyers are responsible for paying their agent’s commission unless otherwise negotiated in the purchase agreement.
-If a buyer wishes to tour a home without representation, they can sign a No Buyer Agency Relationship Acknowledgement with the listing agent. However, in this case, the listing agent represents the seller’s interests, not the buyer’s.
2. Listing Contracts
-Listing contracts no longer include a section for sellers to agree to pay a buyer’s agent commission. Instead, buyer agent compensation is now negotiated in the purchase agreement.
-Sellers are not obligated to pay a buyer’s agent commission. While this has always been the case, previous contract wording often caused confusion. The new changes ensure clarity and transparency.
-The commission structure between the seller and listing agent remains fully negotiable. NAR does not set, fix, control, or suggest commission rates—agents and sellers work together to determine fair compensation.
3. Automated Communication Rules
-Agents must now obtain written consent before sending automated emails or texts, regardless of any existing agency relationship.
-This new rule, established by the Telephone Consumer Protection Act, aims to reduce unwanted spam messages and robocalls.
-If a client requests to stop receiving automated messages after giving written consent, the agent has 10 business days to comply.
These updates are designed to enhance communication, transparency, and negotiation in real estate, benefiting both clients and agents. By clearly defining roles and responsibilities upfront, these changes help create smoother transactions and better experiences for everyone involved.
Now that the unknown is a little more known, you can embrace these improvements with confidence. If you have any questions, feel free to reach out! And for more updates on the housing market and your local community, follow Audrey Steffel – Redlow Group on Facebook.
— Audrey Steffel
Sources:
Add comment
Comments