Member's Area

The changes required by the settlement agreement in Sitzer-Burnett v. NAR are now in effect.  All INI Realty members must abide by the terms of that settlement to remain in compliance with our rules and regulations (as well as the rules and regulations of the MLS and NAR).  Failure to do so constitutes a breach of the settlement, for which fines and/or other penalties may be imposed.

Here is an overview of the required changes, effective immediately:

1) Realtors are REQUIRED to obtain a Buyer Brokerage Agreement BEFORE working with a Buyer.

This agreement MUST be included with your file when representing a Buyer (per our updated Required Paperwork Checklists).  If you fail to obtain this agreement, then you will NOT BE PAID -- NO EXCEPTIONS.

If you are currently working with a Buyer, but are NOT under a purchase-and-sale contract, then you MUST obtain a Buyer Brokerage Agreement before you can continue working with the Buyer.

The Buyer Brokerage Agreement must CLEARLY state the exact percentage and/or dollar amount that you, as the Buyer’s agent, will receive. (You should also educate the Buyer that this is the maximum the Buyer will pay IF the Seller doesn’t provide any compensation to you.)

Additionally, a Buyer’s agent CANNOT receive compensation that EXCEEDS the amount or rate agreed upon in a Buyer Brokerage Agreement.  As an example, if you only agreed to take 2% in the Buyer Brokerage Agreement, but the Seller is willing to offer 3%, you can only take 2% unless you modify the Buyer Brokerage Agreement before the Buyer’s offer is presented.

Accepting a commission that exceeds the agreed-upon rate in a Buyer Brokerage Agreement is a breach of the NAR settlement agreement, for which fines and/or other penalties may be imposed.

PLEASE NOTE: A Buyer Brokerage Agreement is NOT required in the following situations:

• a) If representing a Buyer who went under contract to purchase before August 17, 2024. (However, if that contract falls apart, then you must obtain a Buyer Brokerage Agreement before you can continue working with them.)

• b) When you represent a Buyer of commercial real estate.

• c) When you represent a potential tenant in a tenant placement transaction.

• d) When doing an open house of your listing and a potential Buyer asks you questions about the listing. (However, if the Buyer wants to hire you to make an offer and/or find them a home, then you must obtain a Buyer Brokerage Agreement before you can work with them.)

2) Realtors are prohibited from putting offers of compensation (and mentioning anything about Realtor compensation) on the MLS.  There are steep fines imposed by the MLS on Realtors who fail to abide by this policy.

Additionally, Sellers are no longer required to offer compensation to a Buyer’s agent to list on the MLS.  Sellers can still pay a Buyer’s agent, but such an offer must be communicated off-MLS. When representing a Buyer, you’ll have to memorialize a Seller’s offer of compensation in the purchase-and-sale contract as part of the closing costs. 

PLEASE NOTE: Realtors cannot steer customers to or away from a particular listing because the Seller is or is not willing to offer compensation.  Realtors also cannot make a Buyer’s offer to purchase conditioned on an offer of compensation from the Seller when the Seller has communicated a refusal to pay a co-op.

For more information on the NAR settlement, we STRONGLY ENCOURAGE you to read through NAR’s FAQ by CLICKING HERE.