Real Estate Practice Changes Effective August 17

Real Estate Practice Changes Effective August 17

For The Recorder

On behalf of the National Association of Realtors (NAR), the Northeast Florida Association of Realtors (NEFAR) is notifying its members, real estate professionals, and consumers that significant changes to real estate practices will be implemented nationwide on Saturday, August 17. These changes stem from NAR’s Settlement Agreement, which resolves claims brought on behalf of home sellers related to broker commissions.

NAR is urging all multiple listing services (MLS) to adopt these changes by August 17. Realtor MLSs, which are exclusively owned by one or more Realtor associations, must implement the changes by this date to remain compliant with NAR policies.

The settlement introduces the following practice changes:

- Prohibition of Compensation Offers on MLS: Offers of compensation will no longer be allowed on multiple listing services. However, consumers can still negotiate and pursue offers of compensation off-MLS through consultation with real estate professionals. These offers make homeownership more accessible, particularly for first-time buyers, and benefit sellers by increasing the potential buyer pool and ensuring the best possible offer for their property.

- Written Buyer Agreements Required Before Home Tours: Agents working with buyers must have a written buyer agreement in place before touring homes. Although the changes don’t dictate specific agency agreements or relationships, NAR encourages members to update forms and educate both professionals and consumers on the revised forms ahead of the August 17 deadline. NAR also provides resources to assist with implementing the settlement terms, including guidance on clarity, consumer choice, and a "Written Buyer Agreements 101" resource.

“NAR members are skilled, adaptable, and dedicated professionals, which is why Realtors are integral to the homebuying and selling process,” said Kevin Sears, NAR president. “These changes further empower consumers with clarity and choice when navigating the real estate market. As we approach the August 17 implementation date, I am confident our members will prepare for and embrace these industry advancements, helping guide consumers through the new landscape.”

For more information on how these changes will affect homebuyers and sellers, consumers can consult NAR’s buyers and sellers guides. NAR members can find detailed information about the practice changes in the FAQs on the NAR website. For the latest updates on the settlement and practice changes, visit facts.realtor. You can find more information about the National Association of Realtors (NAR) by visiting their official website at nar.realtor.