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Consumer Guide for Homebuyers & Sellers

Posted on Sep 11, 2024
Posted in GAAR News, GAAR in the Community, Local News

Utilizing resources from consumer guides is essential following the national real estate rule changes enacted on August 17th, 2024.

These resources help simplify the new regulations, ensuring that consumers and professionals alike understand their rights and obligations. By promoting transparency and informed decision-making, this consumer guide could reduce the risk of non-compliance and facilitate clearer communication throughout the real estate process. Staying informed with these resources is key to navigating the evolving landscape effectively.

Key New Regulations That Homebuyers & Sellers Need to Know

Signing a Written Buyer Agreement: Buyers are now required to sign a formal contract with their broker, explicitly outlining the terms of the agreement, including commission rates, services provided, and the broker’s obligations. This ensures that homebuyers fully understand their relationship with their broker and can make informed decisions.
1. A Written Buyer Agreement is needed:
  1. Before touring a home
  2. Before a live virtual tour
2. Decide on a contract length:
  1. Terms can be any duration of time
  2. This is a contractual obligation to that specific broker
  3. Homebuyers should not enter into multiple Written Buyer Agreements at the same time
3. Commission is decided between you and the broker at the start of your working relationship. This can be, but is not limited to:
  1. A percentage
  2. Flat fee
  3. A-la-cart menu of services provided
4. A buyer broker commission can still be provided by the seller:
  1. Both brokers (seller & buyer) would have to discuss off MLS
  2. Forms and contract amendments are available during the home buying process to include seller commission offers and adjust from the original Buyer-Broker agreement
Removal of Commission from MLS Listings: MLS listings can no longer include buyer-broker commission offers. This change aims to separate broker compensation from the property listing itself, encouraging direct negotiations between buyers and their brokers regarding fees.
Increased Negotiation Power: Buyers and sellers now have greater flexibility to negotiate commission fees with their respective brokers, potentially leading to cost savings or tailored fee structures based on services rendered.