What major change did the 2024 NAR settlement bring to how buyer agent compensation is displayed?
Correct Answer
B) Offers of compensation can no longer appear on MLS listings
What changed is the shop window, not the payment. Offers of compensation to a buyer broker come off the MLS altogether and are agreed elsewhere: in conversation, in the offer, or in a separate agreement. Other choices: displaying compensation more prominently on every MLS listing is the opposite of what happened; nothing requires a fixed percentage, and the fee may be a flat amount or an hourly rate; and no rule says only cash compensation is allowed, which would be unworkable at a closing where money moves by wire. Source: NAR settlement practice changes, effective 17 August 2024.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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