The future of Real Estate: What you need to know about the upcoming changes

The real estate industry is about to undergo significant changes, thanks to a landmark lawsuit settlement by the National Association of Realtors (NAR). These changes, set to take effect on August 17, are a result of a $418 million lawsuit settlement with home sellers challenging the commission-sharing policy, including the Houston Association of Realtors (HAR).

“We are taking every step necessary to comply with the terms of the settlement,” said HAR Chair Thomas Mouton of Century 21 Exclusive Properties. “The exact impact of these changes will become clearer after implementation, and HAR will provide ongoing resources to educate both buyers and sellers.”

Here are the key changes that you need to be aware of:

1. Written buyer agreements required:

Buyers must sign a written agreement, such as a residential buyer’s representation agreement, before a real estate professional can show them a property, in person or virtually. These agreements will help clarify the agent’s role and responsibilities, giving buyers a better understanding of the services provided and addressing agent compensation.

2. Compensation discussions directly with agent:

Compensation offered to buyer agents will no longer be displayed on the Multiple Listing Service (MLS). Buyers will need to discuss compensation directly with their chosen agent.

3. Compensation remains negotiable:

Compensation will continue to be negotiable between agents and consumers.

4. Seller contribution options:

Sellers might want to contribute toward buyer expenses, such as closing costs. A new field on the MLS will address seller contributions to buyers.

5. Impact for VA loans:

The Department of Veteran Affairs announced a temporary policy allowing VA buyers to compensate their buyer brokers directly while determining when a formal rulemaking process is necessary. The VA home loan guaranty program is important for veterans’ homeownership.

HAR has launched the Reality of Real Estate as an online hub of resources for homebuyers, sellers, and agents. It features guides, FAQs, financial tools, and videos in English and Spanish.

Stay informed about these changes to make the most out of your real estate transactions. Follow KHOU 11 on social media for more updates: Facebook, Twitter, Instagram, and YouTube.

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