Pending Changes to the Way Buyers Engage with a Real Estate Professional:
- All changes are expected to go into place by mid-July 2024.
- Buyer Broker Compensation must be conveyed off of MLS.
- Buyers working with agents must have Buyer-Broker Agreements signed before viewing properties.
- Agreements must clearly define compensation; open-ended terms like “whatever the seller is willing to pay” are not allowed.
- Buyer Broker compensation cannot exceed the amount agreed upon in the Buyer-Broker agreement.
- Individual brokerages may communicate their compensation via their own websites or other channels, but not through MLS mechanisms.
- Sellers may offer buyer concessions on MLS (e.g., closing costs) as long as these are not conditioned on using a cooperating broker.
- Listing agents must clearly disclose to sellers and obtain written approval for any payment given to a buyer’s agent.
Conclusions: These changes will not take effect until mid-July 2024 at the earliest. In the short term, commissions will still be negotiated between sellers and listing agents, with a portion offered through MLS to the buyer’s agent. Many details are still being finalized. Regardless of the rule changes, sellers are likely to continue offering buyer agent commissions, and our team will maintain the same professionalism and dedication to our buyers and sellers as always.
