NAR Proposed SETTLEMENT INFORMATION
NATIONAL ASSOCIATION OF REALTORS® REACHES AGREEMENT TO RESOLVE NATIONWIDE CLAIMS BROUGHT BY HOME SELLERS facts.realtorECAR Implements NAR Settlement Changes Aug. 12 2024
Explore the links belore to GET READY for the upcoming Changes
From Florida Realtors:
New & Updated Forms
July 30: Florida Realtors has released new listing forms and videos about buyer representation in advance of the August 17 NAR settlement date. PLUS: New webinar added Above.
All forms are available on Form Simplicity. Questions? Contact the Florida Realtors Legal Hotline at 407-438-1409.
Updated Modification to Listing Agreement Form & New Compensation Disclosure Statement Form
August 6, 2024
Florida REALTOR legal team has revised one form and created a new form to ensure you’re fully equipped:
- Modification to Listing Agreement (MLA-6) (Click here to preview) (Click here for redline version)
- Compensation Disclosure Statement (CDS-1 ). This disclosure should be given to the Buyer/Seller/Owner if the existing listing agreement or buyer agreement does not contain this disclosure. (Click here for preview)
You can access these updated forms on Form Simplicity.
Compensation forms
Florida Realtors has released four new forms — two compensation agreements and modification forms, for each compensation agreement.
These new forms aim to provide maximum flexibility to compensation arrangements in the transaction and are designed to allow the participants in a real estate transaction to memorialize compensation arrangements.
- Compensation Agreement – Seller to Buyer’s Broker (CASB-1). This new form is a compensation arrangement in which the seller agrees to compensate the buyer’s broker for procuring a buyer for a listed property.
- Compensation Agreement – Seller’s Broker to Buyer’s Broker (CABB-1). This agreement memorializes any agreement between the brokers. The seller’s broker, also known as the listing broker, to compensate the buyer’s broker for the listed property. This agreement is property specific, and the arrangement between the brokers should relate to the listed property, not serve as a blanket agreement between the brokerages.
- Modification to Compensation Agreement – Seller to Buyer’s Broker. This form allows the parties to make changes to any material terms of the underlying compensation agreement between the seller and the buyer’s broker.
- Modification to Compensation Agreement – Seller’s Broker to Buyer’s Broker.
Revised buyer broker forms
The Exclusive Buyer Brokerage Agreements have been revised and simplified to improve their usability and bring them into compliance with the National Association of Realtors settlement agreement.
These forms are now live on Form Simplicity:
- Exclusive Buyer Brokerage Agreement, Consent to Transition to Transaction Broker (Click here to preview) (Click here for redline version)
- Exclusive Buyer Brokerage Agreement, No Brokerage Relationship (Click here to preview) (Click here for redline version)
- Exclusive Buyer Brokerage Agreement, Single Agent (Click here to preview) (Click here for redline version)
- Exclusive Buyer Brokerage Agreement, Transaction Broker (Click here to preview) (Click here for redline version)
Questions? Contact the Florida Realtors Legal Hotline at 407-438-1409.
UPCOMING Settlement-related CLASSES:
Florida Realtors releases compensation forms
Florida Realtors has released four new forms — two compensation agreements and modification forms, for each compensation agreement. All are now available for download on Form Simplicity. (Login required)
These new forms aim to provide maximum flexibility to compensation arrangements in the transaction and are designed to allow the participants in a real estate transaction to memorialize compensation arrangements.
Form 1: Compensation Agreement – Seller to Buyer’s Broker (CASB-1). This new form is a compensation arrangement in which the seller agrees to compensate the buyer’s broker for procuring a buyer for a listed property.
Form 2: Compensation Agreement – Seller’s Broker to Buyer’s Broker (CABB-1). This agreement memorializes any agreement between the brokers. The seller’s broker, also known as the listing broker, to compensate the buyer’s broker for the listed property. This agreement is property specific, and the arrangement between the brokers should relate to the listed property, not serve as a blanket agreement between the brokerages.
Form 3: Modification to Compensation Agreement – Seller to Buyer’s Broker. This form allows the parties to make changes to any material terms of the underlying compensation agreement between the seller and the buyer’s broker.
Form 4: Modification to Compensation Agreement – Seller’s Broker to Buyer’s Broker.
NOTE: Once all our forms vendors have uploaded/published the new forms, these forms will no longer be available on our website.
Questions? Call the Florida Realtors Legal Hotline, 407-438-1409
From the National Association of Realtors:
Navigating the Upcoming Practice Changes – Live Interactive Webinar
Written Buyer Agreements 101
These agreements benefit consumers because they clearly and transparently outline the services an MLS Participant will provide and how they will be compensated.
Broker-to-Broker Agreements 101
These agreements benefit consumers because they clearly and transparently outline the services an MLS Participant will provide and how they will be compensated.
News & Updates
Litigation Update: Motion Filed for Preliminary Approval of Settlement Agreement
From NAR Legal Counsel: Late last night, on April 19, 2024, Plaintiffs’ counsel filed a Motion for Preliminary Approval of this agreement with the federal court in the Western District of Missouri. Importantly, this filing initiates the 60-day time period during which...
Fannie Mae and Freddie Mac issued guidance, echoing sentiments already shared by FHA Commissioner Julia Gordon
Read more here: https://www.housingwire.com/articles/gses-will-not-count-buyer-agent-commissions-as-ipcs/
Florida Realtors Legal Update Webinar Available
In this hour-long webinar, Juana Watkins, Vice President of Law and Policy & General Counsel for Florida Realtors® answers some of the most frequently asked questions about the settlement and provides practical information that you can put to use today and in the days...
Letter to Veterans Benefits Administration from NAR
See the letter sent by NAR President Kevin Sears to the Veterans Benefits Administration requesting use of loan benefits for paying buyer brokers. Click here to see PDF
Real Estate Today Podcast on the NAR Settlement
In this week's episode of Real Estate Today, NAR President Kevin Sears gives the facts about the $418 million settlement and what it means for homebuyers and sellers. You can find the episode on facts.realtor, or by accessing the link here.
The Truth About the NAR Settlement Agreement
Link to article here Misinformation has been pervasive in the media over real estate commissions. Here are the facts you should know. The national conversation around real estate commissions reached a crescendo in the last week since the National Association of...
Statement on ECAR MLS
The NAR Settlement has NOT been accepted by the Judge in the case, so it is not final. As a result, no MLS rules have been updated and no requirements have been issued by NAR. Florida Realtors, in conjunction with the Florida Legal team, continues to work on updates...
Update on Forms Changes
Florida Realtors is continuing to work on updates to forms and the creation of new forms in response to NAR’s proposed settlement.
Updated Florida Realtors Forms/Contracts
Good afternoon ECAR Members, Please find below a list of all the forms that have been updated in Form Simplicity:(All listing forms included in the “Note” comments below) Several listing agreements were modified with regards to offers of compensation. The affected...
Correcting the Record: NAR Does Not Set Commissions
Following recent inaccuracies in media coverage, including the false representation or suggestion that the National Association of REALTORS® (NAR) requires a standard 6% commission, NAR has issued the following statement: CHICAGO (March 19, 2024) – The National...
Settlement INFO SHEET
FREE CE Webinar: Understanding Buyer Broker Agreements
Earn 3 CE credit hours FREE via Zoom while making sure you’re up-to-date on the way the real estate business is changing.
Because some MLSs are changing the way brokers do business it is more important than ever that all Realtors have all the tools and knowledge possible to do business successfully. The 2024 Leadership Team has approved hosting the 3-hour (CE-approved) course “Understanding Buyer Broker Agreements and How to Implement Them” via Zoom Video Conferencing throughout the year.
About the course
Course description: Have you ever felt like saying, “Buy from me or get out of my car.” You work with a buyer for days on end, drive them to every house they want to see, only to find out a week later that they used their Great Aunt Lucy, who has a real estate license, to buy a home? Loyalty seems to be at an all-time low. The internet helps buyers gain tons of information and we as licensees have to prove our worth and value even more today. Why should a buyer pick one agent to work with and be loyal? Is there a way a buyer can do that? We ask sellers to commit to one brokerage with an agreement so why don’t we ask buyers for the same commitment? Let’s find out how.
After taking this class students will be able to:
- Explain the importance of working exclusively with a buyer
- Determine which agreement is appropriate when
- Understand how written agreements protect both the customer and the brokerage
- Recognize what an exclusive representation means when working with a buyer
- Comprehend what types of agency relationships are authorized with an exclusive buyer-broker agreement
- Clarify to a buyer the importance of the agreement and how to present it
- Appreciate the arbitration hearing process and how clear written agreements between the buyer and seller can reduce the confusion of procuring cause.
SETTLEMENT INFO SHEETS
In the coming weeks, we’ll be detailing information that is important for our members regarding the proposed NAR Settlement.
These are meant to be quick guides to clear up misconceptions, point out specific details or answer questions we may have coming in.
We’ll be posting these info sheets on social media and archiving them in this space for future reference.
In the world of real estate,
values matter
