LANSING, Mich. (WZMQ) – Realtors nationwide are navigating changes that require more transparency on listing and buyer agreements. The National Association of Realtors has introduced regulations that change the way commissions are handled. The move follows a lawsuit settlement that brought to light the need for greater transparency and fairness in the real estate industry.
All real estate agents must now negotiate compensation terms directly with their clients, whether representing buyers or sellers. Christoper Germain, the former president of The Upper Peninsula Association of Realtors explained that as an agency state, Michigan realtors have already been following many of the new policies, but now will be required to.
For sellers, listing contracts will have a break down of who is being paid for what. Germain said that in many cases buyer agents can be compensated by the seller. Those payments, plus the commission for the listing agency must be clearly shown in the contract as a part of the the standard listing commission. He said it’s going to show who’s getting paid what a little bit more clearly in those listing contracts.
Those buying homes will see some changes too. When touring a house or working with an agent you’ll sign a buyers-agent agreement that more clearly defines the partnership, and the fees for their services.
“It protects us. We’re saying, hey, we’re going to work with you, but you’re also going to work with us. That way in the end, if we do find you a home and it, it ends up going through and closes the deal that we know we’re going to get paid for those services as well.” Germain said. “Your buyer’s agent is going to be with you throughout the process and once you’re in agreement with that agent you’re just going to absolutely know what the costs are, but you’re also going to know what services that agent is providing.”
The changes officially took place on August 17, and will now be common practice for realtors who are members of the association nationwide.
