The NAR settlement affects which of the following?
Correct Answer
C) All real estate agents and brokers accessing MLS systems
The changes reach people through MLS rules, so anyone who uses an MLS is bound whether or not they carry a membership card. Other choices: limiting it to NAR members misses that the MLSs adopted the rules and apply them to every participant; limiting it to large brokerages invents a size threshold that does not exist; and limiting it to buyer agents leaves out listing agents, who can no longer publish an offer of compensation and so are changed at least as much. Source: NAR settlement practice changes, effective 17 August 2024.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
More General Principles Of Agency Questions
A listing agreement creates an agency relationship between:
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- → A commercial tenant is negotiating a five-year lease for retail space. The tenant hires a tenant representative broker to negotiate lease terms on the tenant's behalf. What agency relationship exists between the tenant and the tenant representative?
- → A property manager signs a lease on behalf of the property owner. The management agreement authorizes the manager to execute leases for terms up to one year. The manager signs a three-year lease with a commercial tenant. What is the likely consequence?
- → A property manager discovers that a rental unit has a significant mold problem. The manager repairs the visible mold but does not inform the property owner about the extent of the damage or the potential liability. Has the property manager violated any agency duty?
- → A listing agent tells prospective buyers that the home sits on 'the finest street in the whole county' and is 'a once-in-a-lifetime opportunity.' These statements are best characterized as:
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- → Under the new rules, how can a buyer's agent be compensated?
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