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Which of the following practices is NOW PROHIBITED under the NAR settlement?

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Question & Answer

Review the question and all answer choices

A

Buyer's agents requesting compensation from sellers

Buyer's agents can still request compensation from sellers through negotiations. This practice is not prohibited by the NAR settlement, though the context and method of such requests may be subject to other regulations.

B

Displaying offers of buyer broker compensation on MLS

Correct Answer
C

Sellers agreeing to pay buyer's agent fees

Sellers can still agree to pay buyer's agent fees. The NAR settlement does not prohibit this practice; it only restricts how such compensation offers are displayed on the MLS system.

D

Buyers negotiating agent compensation

Buyers retain the right to negotiate agent compensation directly. The NAR settlement does not eliminate this option, though it may change how such negotiations are structured and disclosed.

Why is this correct?

The NAR settlement specifically prohibits displaying offers of buyer broker compensation on the MLS system. This transparency measure aims to reduce buyer confusion about who represents whom and how agents are compensated, directly targeting the practice of publicly posting commission offers on MLS platforms.

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