The recent settlement with the National Association of REALTORS® (NAR) has shaken up the real estate world. Not because it’s one of those rare, hundred-million-dollar settlements—those come and go—but because it changes how real estate contracts are going to look moving forward. And if there’s one thing everyone in the real estate business knows, it’s that when contracts shift, so does the way people do business.
No More Broker Compensation Listings
MLS was once a window into everything—available properties, asking prices, and yes, broker compensation—things are about to change. Under the terms of the NAR settlement, listing broker compensation on the MLS is now prohibited. What does this mean for buyers and sellers?
Previously, when a property was listed on the MLS, it would openly advertise the compensation a buyer's broker would receive. This was supposed to give buyers clarity, while also leveling the playing field among brokers. But now, those compensation figures won’t be displayed. Consumers aren’t left in the dark; they can still negotiate broker fees, but those talks will happen behind the scenes, outside the MLS.
It shifts how negotiations will unfold. Buyers will need to be savvier about the services they’re getting and how much they’re paying for them. And brokers? They’ll need to make sure those services—and their costs—are crystal clear. The days of assuming compensation is baked into the MLS are over.
Written Buyer Representation Agreements
Another key part of the NAR settlement is the requirement for written agreements between buyers and brokers. No more handshake deals, no more casual promises. If you're working with a buyer, you’re going to need a written contract.
These buyer brokerage agreements are designed to lay everything on the table: what services are being provided and what it’s going to cost. For years, NAR has been nudging agents to use these agreements. The argument has always been that transparency benefits everyone. Buyers know exactly what they’re getting and what they’re paying for. The settlement now makes this practice mandatory.
If you’re a real estate agent or broker, you’ll have to start getting used to explaining your value upfront—and having it in writing. Buyers, on the other hand, can expect a lot more clarity on what their broker is doing for them. And while some may worry that more paperwork equals more hassle, this shift is actually a big win for consumers. Written agreements mean fewer surprises down the road, and in real estate, that’s priceless.
Prepare for the Shift with Spectrum Title Services
As the real estate market shifts toward these new transparency standards, having the right support in place is your ticket to positive outcomes. At Spectrum Title Services, LLC, we’re ready to help you figure out these updated contracts. Whether you’re a buyer, seller, or agent, our team is here to ensure that your transactions are smooth and compliant with the latest industry changes.
Give us a call at 954-727-3347 today to see how we can assist you in understanding the new rules.