PRESS RELEASE FOR BUYER CLIENTS For immediate Release - March 16, 2024: By Scot D. Campbell, Broker of Record Coldwell Banker-Campbell Realtors, Huntington Beach, CA
In response to the Sitzer/Burnett v. National Association of REALTORS® (“NAR”) lawsuit, NAR announced changes to the Realtor MLS rules. The changes reflect the most significant modification of the rules of agency since the practice of Buyer Agency was introduced following the Easton V. Strassburger case in 1984. The changes to the Multiple Listing System were announced on March 15, 2024 and the rules will become effective in July 2024: 1) Agents are required to sign a written Buyer Representation Agreement with their Buyer Clients wherein compensation to be paid by the buyer is specified. 2) Seller paid buyer commissions will no longer be published in the Realtor MLS. Instead, the listing agent will publish a dollar amount or percentage that the seller is offering to credit the buyer through escrow for the payment of closing costs including the Buyer Agent commission.
The NAR announcement has left many Home Sellers with questions and concerns: Q: Will buyer representation agreements become mandatory under California law? A: We don’t know whether there will be future proposed legislation that requires California licensees to use Buyer Representation Agreements; however, it is clear that the industry is moving toward mandatory agreements between Buyers and their Agents. Coldwell Banker-Campbell Realtors uses a one-page Simple Buyer Representation Agreement along with the C.A.R. Standard Form BRBC (which specifies that the seller credit money from escrow to pay the Buyer Agent commission). Q: What if a buyer doesn’t have enough money to pay for a buyer’s agent? A: The C.A.R. Standard Form BRBC can be included with any offer a buyer wishes to make on either listed or unlisted properties. In essence, a credit to the buyer’s closing costs from the seller pays the Buyer Agent commission in the amount previously negotiated between the Buyer and the Buyer Agent in the Buyer Representation Agreement. Q: Will this change how homes are bought and sold in California? A: The answer is absolutely “Yes”. Buyers will formally “hire” a Buyer Agent and the agent compensation will be agreed in writing before commencing the process of locating a home to purchase.