New national real estate law begins Saturday

TERRE HAUTE, Ind. (WTWO/WAWV) — A big change is coming to the world of real estate starting on August 17.

While the change may not have a huge financial impact, it will modify the process of purchasing a home for the buyer and realtor. Staff at Century 21 Elite in Terre Haute helped to explain the details. Managing broker Natalie Green says that the National Association of Realtors is implementing a new contract.

“The contracts can be for a specific time frame, or a property, or even a wider search,” Green said. “The most important thing to remember is that if you are a home buyer, you are going to have to sign a contract with an agent to be able to see that property.”

These changes have been in effect in the Hoosier state since July 1, but the new rules will not be implemented on a national level until August 17. The change comes after a major settlement agreement between home sellers and the National Association of Realtors earlier this year. Realtor Peg Finzel says it is important for the buyer to understand these new contracts.

“Now these contracts might seem confusing,” Finzel said. “You really need to understand what you’re signing, because buying and selling a home is one of the largest transactions many people will ever make.”

With the significance of these large transactions, realtors have been preparing to explain these contracts to clients, while making sure that the client is comfortable working with them before signing. Green says the change also means that real estate buyers and sellers can negotiate the fees they pay real estate agents.

“Make sure to have a conversation with your agent, and an open conversation about what you are signing when you are signing that contract so that you understand what you’re signing,” Green said. “Our agents have been training and preparing for this since February, so they are very knowledgeable and can explain these contracts in depth to their clients.”

The change is expected to reduce the cost of buying and selling a home, while being transparent about financial responsibilities early in the process.

Anyone with questions can contact Peg Finzel here.

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