This list of questions was compiled by attendees during a recent forms class and have been answered by Agent Advantage Certified CCAR Faculty. The information below is strictly for educational purposes, specific questions should be addressed directly with your Broker.
*Page last edited 7/1/2024 at 3:25 p.m.
1. What settlement issues are still outstanding?
All up-to-date information on the NAR settlement can be found at www.facts.realtor
2. When the lawsuit is finalized, will Broker-to-Broker compensation still be allowed?
Broker-to-Broker compensation is still allowed, it’s just not in MLS anymore.
3. How will a buyer's agent determine what compensation is being offered, if any?
The buyer's agent will be responsible for communicating with the listing agent to determine what (if any) cooperative compensation is offered from the listing agent or seller. This might be via phone call, text, email, or the listing agent may also post it on their website (with permission from the seller).
4. Can we advertise the compensation on a flyer in the home that is listed for sale?
We believe this will be an acceptable practice. The proposed settlement prohibits compensation in the MLS, but it allows a broker to advertise compensation on their website (with seller’s permission). Always check your Broker's policy on advertising.
5. Are we allowed to put compensation on Showing services?
No.
6. Will the compensation rules apply to builders too?
The rules apply to members of the National Association of REALTORS®. Builders who are members of NAR and NTREIS are bound by the same rules, regulations, and restrictions.
7. Can we advertise compensation on our personal property websites that we create for listings? Or on our personal websites?
You can advertise compensation on your website with seller approval. Please ensure you check your Broker’s policy on advertising.
8. What is the main difference between long and short Buyer/Tenant representation form?
There are many differences, please check with your Broker to determine if they will allow you to utilize the short form.
9. Can we ask if a buyer has a written buyer representation agreement?
Yes. The new rules don’t change your obligation to confirm if a buyer you're talking is already being represented by another agent.
10. How does this impact Open Houses for unrepresented buyers? Since NAR has said you can't show a property without a Buyer’s Rep Agreement in place.
If you are an Agent for the Listing Broker, you will be representing the Seller during the open house. Unrepresented Buyers may enter the home without signing a rep agreement. You MUST disclose who you represent, which is the Seller.
11. To add to that Open House question. Do you turn them away if they don't sign the short or the long form?
If you’re hosting an open house for another Broker, you either need to have a sub-agency signed with that Brokerage and you then represent the Seller and don’t need the Buyer Rep Agreement signed. If you don’t have the sub-agency signed, then at a minimum you will need to have the Buyer Short Form signed as a Showing Agent. Talk to your Broker and become familiar with their policy on this.
12. If we are not the listing agent & an unrepresented buyer contacts us to see a home, can we show the home if they do not want to sign the short or long form?
If you do not work for the Listing Broker, you cannot represent the seller without written authorization from the Listing Broker to be their subagent. You cannot show the house to a buyer without a representation form unless you represent the seller. You MUST represent someone when showing the house.
13. Do we need a few of these [Buyer Rep Agreements] for an Open House? They sign as they walk in?
If you do not work for the Listing Broker, you should have Buyer Representation Forms available to have signed to tour the property. Refer to your Brokers’ policy on open houses.
14. With ongoing changes made to these new forms, how do we know if we are using the most recent in our ZipForms templates?
ZipForms will be updated with the newest versions as they become available. You should also check with your Broker.
15. If the seller agrees to pay the buyer agent in contract, do you have to make an amendment to the listing agreement to change what they will pay?
You only need to amend a listing agreement if you want to modify what was agreed when it was first signed. There’s no amendment unless the seller is changing what they agreed to.
16. Can we advertise that seller willing to give a % of sales price towards "buyer's fees" on MLS?
You may NOT list any compensation in the MLS. Concessions can only be to the buyer and cannot be to the buyer's agent per paragraph 5 of the listing agreement.
17. If the compensation agreement is sent before showing the house, I’m assuming the buyer can decide not to see the home?
Correct.
18. With the compensation agreement between Broker & owner, would you submit this with an offer to purchase as a buyer agent, or would you send it prior to submitting an offer?
Prior to showing or making an offer. If you don’t you have no assurance they will agree to it later.
19. If BAC is no longer on the MLS, what is stopping listing agents from telling agents different BAC amounts? I would assume that is unethical.
Unilateral offers of compensation are no longer required. This does create potential for discrimination. Brokers and agents need to have records to ensure consistent offerings.
20. I've been told that Broker-to-Broker compensation is going away in the future. Is that right?
The current proposed settlement does not remove the sharing of compensation, it just changes how it is communicated.
21. Could a listing agent load this addendum with it pre-filled like we do other addendums?
If your forms software provides templates, you can use them for all forms. You will need to stay on top of revisions on any templates when and if it’s changed.
22. Can we create a link through Dropbox/Dotloop or something like that and have the link ready to send to agents?
You can share compensation information outside of the MLS. This created link could be shared with individuals but not included in the MLS listing.
23. What do you do when the Broker is the one who won’t answer their phone?
TREC has a 2-Day Response Rule for all agents and Brokers, but it only applies if there is a real estate transaction in effect. If it cannot be resolved Broker-to-Broker, a TREC complaint could be filed.
24. Does the 2-Day Rule apply to investors with a LOI?
TREC rules apply to all license holders. It does not apply to members of the public.
25. Can we list compensation on listings on a website?
You can list compensation on your listings on your business website.
26. Can we upload this form [compensation agreement] to our website? or have a website for each property that is being listed?
You can list compensation on your listings on your business website as long as you have the permission of the seller and your Broker.
27. How does the Open House discussion apply to Brokers' Open House?
A broker open house is attended by real estate professionals, not buyers and sellers. No representation documents would be required.
28. Can you become a subagent to do an Open House for another Brokerage?
Yes, with written permission to be a subagent from the Listing Broker. Your Broker must also agree because they also become subagent to that seller.
29. If the commission % will no longer be in MLS, how do we know before signing any docs what the compensation will be?
Communication between agents is critical. Compensation has always been and still is negotiable, what’s changed is how it’s communicated.