Compliance
5 min read

What the NAR Proposed Settlement Means For Agents and How To Ensure Compliance

The National Association of REALTORS® (NAR) has reached a settlement to resolve a lawsuit about broker commissions. Starting August 17, 2024, real estate agents must have written buyer agreements before they tour homes. These agreements must clearly
Written by
Esther Choi
Published on
July 9, 2024
All posts
What is the NAR Proposed Settlement Agreement?

The National Association of REALTORS® (NAR) has reached a settlement to resolve a lawsuit about broker commissions. Starting August 17, 2024, real estate agents must have written buyer agreements before they tour homes. These agreements must clearly state the agent’s fees and confirm that these fees are negotiable. Offers of compensation between listing brokers and buyer brokers can no longer be listed on Multiple Listing Services (MLS) but can still be shared on brokers’ websites or directly between brokers. This settlement aims to make real estate transactions more transparent and fair for consumers.

What does this Settlement Mean For Real Estate Agents?

For real estate agents, the settlement introduces new requirements that brings compliance to the forefront. Without a written agreement, agents will no longer be able to show buyers any house. The written buyers agreement can be exclusive or non-exclusive, as long as it is signed prior to the buyer entering the house.

What do real estate agents need to do to stay in compliance with the new rule changes?

To stay compliant with the new NAR settlement, real estate agents must adopt new practices and tools to manage the required written agreements efficiently. Here are the essential steps agents need to take:

  1. Implement Written Buyer Agreements: Ensure that all buyers sign a written agreement before touring any homes. This agreement should include the agent’s fees and a statement confirming that these fees are negotiable. The agreement can also be exclusive or non-exclusive.
  2. Eliminate Compensation Offers from MLS: Remove all fields and references to compensation offers from MLS listings. Compensation information should only be shared directly or through brokers’ websites.
  3. Maintain Detailed Records: Keep thorough records of all signed agreements and communications regarding compensation to ensure transparency and compliance. These signed agreements must also be shared with the buyers immediately after signing to ensure compliance.
How to ensure compliance for agents with OnSight Lead Gen?

Technology that provides real estate agents with the ability to E-Sign written buyers agreements from anywhere has now become indispensable with the new NAR settlement requirements. Both the agent and the buyer need to receive a copy of the signed documents immediately to stay in compliance. This is where OnSight Lead Gen comes in.

With OnSight Lead Gen, real estate agents can seamlessly manage compliance by leveraging its built-in e-signature platform and document storage capabilities. The buyer will scan the auto generated QR code enabling them to sign the agreement on their device. Once the buyers agreement is signed, both the real estate agent and buyer will instantly be emailed over a copy. This ensures that all necessary agreements are signed, documented, and immediately accessible, meeting the compliance requirements effortlessly. For cases where there is no internet or service available, OnSight Lead Gen saves the documents and then once both parties gain connection, the email will be sent out to them with the signed documents. By using OnSight Lead Gen, agents will no longer need to carry paper documents and avoid the risk of missing signatures, thus ensuring that buyers can enter homes only after all compliance steps are fulfilled. This streamlined process not only simplifies compliance but also enhances the efficiency and professionalism of real estate transactions.

Where do we go from here?

The NAR settlement introduces significant changes to real estate transactions, focusing on transparency and consumer protection. To comply with these new rules, real estate agents need to adopt efficient practices for managing written agreements and compensation disclosures. OnSight Lead Gen offers a comprehensive solution, allowing agents to handle these requirements effortlessly with its paperless, touchless sign-in platform and integrated e-signature capability. By using OnSight Lead Gen, agents can ensure they stay compliant with the new NAR settlement changes for less than $5 a month. To start a free trial with OnSight Lead Gen just click here.

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