What You Need to Know about Realtor Compensation Changes Effective August 17, 2024

If you are about to sell or purchase residential real estate in the United States, including Massachusetts, New Hampshire, and Maine, you need to know the important changes in the way and manner real estate agents will be compensated for their professional services.

Beginning August 17th, real estate agents in the United States will be subject to new rules that change how they are compensated for their professional services. The changes are part of a $418 million dollar settlement announced back in March by the National Association of Realtors (NAR).  Moving forward offers of compensation are prohibited on the Multiple Listing Service (MLS), but will continue to be an option consumers/buyers can pursue off the MLS through negotiation and consultation with real estate professionals.  Sellers of residential real estate will no longer be obligated to pay the buyer’s real estate agent’s commission.  Agents working with a buyer must also enter into separate written agreements with their buyers before touring a home.  The buyer and the agent will negotiate the amount of the buyer’s agent’s commission, rather than with the seller.

The Team here at Downey Law Group LLC/DLG Closing values our partnerships with real estate agents, whether they represent the sellers or buyers.  Real estate agents are invaluable resources who work very hard to make the sale and purchase process as easy as possible for their clients.  We urge all our clients and future clients to consult with a real estate agent before making any firm decisions.  And the Team here at DLG is ready to guide both sellers and buyers through the new realtor compensation process.  For more information, please do not hesitate to contact us.