Before the NAR settlement, sellers' agents routinely offered a portion of their commission to buyer's agents via the MLS. This cooperative compensation model is no longer allowed on MLS listings, though sellers can still voluntarily offer to pay buyer agent fees outside the MLS.
Previously, a listing showing "3% co-op" on MLS meant the seller would pay 3% to any buyer's agent who brought a successful buyer. Now this offer cannot appear on MLS, but the seller can agree to pay buyer agent fees during offer negotiations.
The NAR settlement did NOT ban sellers from paying buyer agents — it only banned advertising this on the MLS. Sellers can still offer to pay through other channels or agree during negotiations. This distinction is critical for the exam.
Related Terms
Related Concepts
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
A form that explains to the buyer the types of agency relationships available and the duties associated with each, required to be provided before substantive discussions begin.
An initial meeting between a buyer and agent to discuss the buyer's needs, explain agency relationships, review representation agreements, and establish expectations for the home-buying process.
The duty of a buyer's agent to act solely in the buyer's best interest, avoiding any conflicts of interest and putting the buyer's needs above the agent's own financial interests.
The legal ending of a buyer representation agreement, which can occur through expiration, mutual consent, breach, or specific termination provisions outlined in the contract.
Frequently Asked Questions
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