Stealthy Commissions: Real Estate Agents Push Boundaries Amid Rule Changes

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As the deadline for new real estate regulations looms, a surge of inventive—if not dubious—tactics has emerged, with agents using covert methods to advertise buyer commissions. This trend has sparked concern and debate within the industry as the National Association of Realtors (NAR) enforces stricter settlement terms.

A New Wave of Subtle Commission Ads

Real estate leaders are sounding alarms over increasingly creative strategies used to skirt new rules designed to limit buyer broker commission disclosures. In a notable example, a lawnmower was enlisted to etch "3%" into the grass of a backyard, captured in an aerial shot and posted on a multiple listing service (MLS). Art Carter, CEO of the California Regional Multiple Listing Service, highlighted this peculiar approach during a webinar, only to later discover that it was a prank by Tyler Polk, a Louisiana-based eXp agent. Polk’s stunt, shared widely across Facebook groups, has been humorously noted but raises concerns about the lengths to which agents will go to circumvent regulations.

Creative Workarounds and Their Implications

Beyond lawn art, agents have experimented with various methods to sneak commission offers past the new rules. Examples include unique landscaping designs and hidden notes within lockboxes. One meme featured “3%” in Braille, sparking discussions about whether such creative displays comply with the settlement's terms.

The debate intensified as The Real Brokerage President Sharran Srivatsaa addressed these tactics during a webinar watched by around 10,000 industry professionals. Srivatsaa cautioned against such "cute" tactics, urging agents to rethink their strategies. “Stop being cute. These tactics may violate the settlement terms or lead to fines,” he warned. However, he acknowledged that some methods, like the lockbox note, might be permissible if not directly communicated through the MLS.

Regulatory Risks and Industry Reactions

Despite warnings from industry leaders, many agents and brokers continue to share and employ these inventive methods. One particularly notable instance involved a front yard landscaped to display “3%,” which, while possibly legal if not posted on the MLS, underscores the industry’s creative, yet controversial, responses to the rule changes.

Moreover, some agents have made conspicuous adjustments to listing prices as a form of indirect commission disclosure. For example, a Michigan home was listed for $490,003—a figure that raised eyebrows for its apparent attempt to signal a commission offer. The listing was later adjusted to $490,000 and marked as pending, suggesting that some agents are indeed pushing boundaries in response to regulatory constraints.

Navigating the New Norms

As the industry adapts to the new regulations, the challenge will be balancing creative marketing with compliance. The evolving landscape poses questions about transparency and adherence to the rules, pushing real estate professionals to find innovative yet lawful methods for showcasing commissions and other key details.