Summary of New MLS rules for Buyer Representation Agreement

As you may have seen on the news, New MLS rules going into effect will greatly change how homes are sold and purchased this August. Since there was a great amount of conflicting or just plain wrong information.  I want to give you a summary of the new changes this August with a quick outline of Then and Now.

Please understand that

all agents are required to get a Buyer’s Representation Agreement before showing any home.  Without a signed Buyer Representation Agreement, the agent can be fined $500.00 and lose their license.

This agreement is negotiable on Fees, Time Frame, Area and other factors.

• Then:   Sellers would list their home and the listing agent would advertise the commission paid to buyer’s agent on MLS.
• A class action lawsuit was filed by buyers saying this did not give them ability to negotiate how much of the home price they paid went to their buyer’s agent
• There was never a “set Commission rate” . The Commission rate was posted on the MLS .
• Now      Listing agent will not be able to post rate seller to pay Buyer or buyer’s agent on the MLS but there is a new field with amount seller may provide to buyer concessions.
• Now     Seller and Listing agent will discuss what, if any, concession will be made to Buyer or buyer’s agent
• Then:   Buyer’s agent received commission rate posted on MLS.  Buyers may or may not have had a Buyer’s Representation Agreement that would
• contract the buyer’s agent to work for them in finding a home. 
• Set a time frame and area the agreement would be in effect
• Now:     Buyer’s agents are required to get a Buyer’s Representation Agreement (BRA) before showing any homes that will
• contract the buyer’s agent to work for them in finding a home. 
• Set a time frame and area the agreement would be in effect
• It will also
• Provide opportunity for agent and buyer to discuss fees.  The buyer may negotiate with the agent to be paid 3%, 2%, 1% or a set dollar amount. It may also specify what services the agent will provide. It can be the Full service they do now, or can be from reduced services, (as an A-La-Cart services menu). The services can be paid up front, during or at closing.
• Outline how the agent will be paid
• Fees from seller if posted by Listing agent on their website or flyer. (fee cannot be posted on MLS)
• If the Fee is greater than or equal to the amount negotiated on their Buyer Rep Agreement, all fees for the Buyer’s Agent is paid from Sellers posted fee.
• If the Fee is less than Sellers Posted fee, the Buyer to pay difference.