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Maryland REALTORS® Breaking News: VA to Introduce Temporary Fix for Buyer Agent Compensation Issue

by Jacky Mueck Consumers, News 0 0 Comment 744

The action is in response to the NAR Proposed Settlement and its impact on Buyers using VA loans
The unified message coming from NAR’s members during recent Legislative Meetings helped to bring this issue to the front
As Maryland REALTORS^® applauds this decision, Listing Brokers offering compensation to Buyer Brokers outside of the MLS remains the best model for all Buyers, including VA clients

A deputy director from the United States Department of Veterans Affairs (VA) said on Tuesday that the department plans to temporarily lift its ban on VA buyers directly paying fees for Buyer Brokerage services until it determines the necessity for engaging in a formalized rulemaking process.

Though not an official announcement, this move has the potential to help those using VA loans and can serve as a final workaround, if a listing broker or seller are not offering compensation to the Buyer Broker.

“This is wonderful news,” said Chris Hill, 2024 President, Maryland REALTORS^®. “The work of our members and the members of other associations helped to put pressure on this issue during NAR’s Legislative Meetings earlier in May. This is an excellent example of effective advocacy.”

Since the announcement of the Proposed Settlement, one group of buyers—those using VA loans—would have had difficulty using them because of upcoming Practice Changes. While this decision by the VA addresses this challenge, Maryland REALTORS^® advises that it should be looked at as a fail-safe, should other means of cooperative compensation between the Listing Broker and Buyer Broker not materialize.

“As we celebrate the decision, we should keep in mind that our current cooperative compensation model, with the Listing Broker providing compensation to the Buyer Broker, remains the best model for all—VA buyers, first-time buyers, everyone,” said Chuck Kasky, CEO, Maryland REALTORS^®. “In terms of opening the market to more buyers and helping sellers get more offers, this remains the best path for all, including VA buyers.”