LITTLE ROCK, Ark.- Since 2019, a lengthy legal battle between 500,000 homeowners and the National Association of Realtors settled for $418 million in March.
As part of the settlement, the NAR has agreed to implement new rules to provide more transparency and flexibility in the real estate commission structure.
“Where things have been recommended practice and probably best practice in the past, now it’s mandated,” Engel & Volkers Salesperson Ryan Stephens said.
Housing issues arise as University of Central Arkansas welcomes potential biggest freshman class The new rules include many changes, one of which allows for more negotiation between agents and their clients.
“It gives consumers the ability to negotiate a little bit more of those fees with their buyer agent, and it gives them maybe a little more control on how their agent is compensated,” Stephens said.
It also mandates that the consumer be informed of the agent commission split between the listing agent and the buyer’s agent.
“It’s actually very helpful for consumers because it clearly communicates how their agent is compensated and gives them a better understanding of the services that that agent is going to provide them,” Stephens said.
Real estate lawsuit settlement upends decadeslong policies that helped set agent commissions Another change is within the forms and documents the agent or buyer must agree upon and sign before showing a home to a client.
“In the past, you could call an agent or somebody that you knew that worked real estate and ask to go see this home today or sometime this week,” Stephens said. “They could show you that home without necessarily executing an agency agreement, now that no longer can happen.”
The settlement also requires the NAR to educate its members about the changes and provide training on the new rules to ensure industry compliance.
Stephans says that just last week, there was a statewide Arkansas Realtors Association Meeting to educate on the new forms again before the mandatory shift this Saturday, August 17, 2024.
Rules that helped set real estate agent commissions are changing. Here’s what you need to know “It’s something new, and we’re figuring it out and trying to make it really the best for the consumer,” Stephens said.
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