The National Association of Realtors has updated its frequently asked questions page
Among the topics covered are compensation practices for buyer representation. The update is dated April 26.
This settlement does not change the ethical duties that association members owe to their clients, the FAQ said.
But offers of compensation made to the buyer's real estate broker can be done off of the multiple listing service. Meanwhile, "sellers can offer buyer concessions on an MLS (for example — concessions that can be used for buyer closing costs)," according to NAR.
The proposed change in how a buyer's real estate brokers are paid is a concern for mortgage lenders because of its effects on loan qualification broadly as well as for
"NAR remains dedicated to promoting transparency in the marketplace and working to ensure that consumers have access to comprehensive, equitable, transparent, and reliable property information, as well as the ability to have affordable professional representation in their real estate transactions," the online posting read.
The buyer's broker will be able to be compensated several ways, including a fixed commission paid by the consumer; a seller's concession; or by taking a portion of the listing broker's compensation.
NAR reached an agreement with the Sitzer/Burnett plaintiffs in March; a federal court
However, some are speculating that an April 5 U.S. Circuit Court of Appeals for the District of Columbia that
The FAQ also responded no to a question on whether brokerages are limited to one agreement with the buyer.
"NAR policy does not dictate: What type of relationship the professional has with the potential buyer (e.g., agency, non-agency, subagency, transactional, customer); The term of the agreement (e.g., one day, one month, one house, one zip code); The services to be provided (e.g., ministerial acts, a certain number of showings, negotiations, presenting offers); The compensation charged (e.g., $0, X flat fee, X percent, X hourly rate)," the posting said.
