18 March Statement from Chris Hill, 2024 President, Maryland REALTORS®, about the National Association of REALTORS® Proposed Global Settlement by Jacky Mueck Membership, News 0 0 Comment 2820 Since 2016, Maryland law has required the use of written buyer brokerage agreements, which has benefited consumers throughout the State and has brought transparency into the real estate transaction. We lead with this because, at the heart of the allegations against the National Association of REALTORS® (NAR) is confusion about how a Buyer's Agent gets paid for their services—finding lenders, searching properties more thoroughly than an Internet search, working with the Buyer so they may qualify for the home of their choosing. Our “Exclusive Buyer-Tenant Residential Brokerage Agreement” makes transparent that the Buyer is responsible for the fee to the Buyer’s Broker. In light of Friday’s news about NAR’s proposed global settlement, which would end the litigation of claims brought by home sellers in other states, it’s important to reflect on the fact that for more than 8 years, Maryland REALTORS® has brought clarity and transparency to the real estate transaction by proper usage of both our Exclusive Right to Sell Residential Brokerage Agreement and our Exclusive Buyer-Tenant Residential Brokerage Agreement. In the proposed settlement, which requires approval by the court, NAR agreed to certain actions to move forward for consumers and its membership. These actions included: - Instead of facing a judgment in excess of $5 billion, NAR would pay $418 million over four years. - NAR has agreed to eliminate any requirement that it or its members provide an offer of compensation to buyer brokers on the MLS. Such offers of compensation will continue to be an option to consumers off the MLS. This rule takes effect July 2024. - NAR has agreed to enact a new rule requiring buyer agents to enter into written agreements with their buyers before the buyer tours any home. On this last point, as already stated, real estate licensees in Maryland are required by law to use written Buyer Brokerage Agreements with residential clients. In real estate, there are two sides to each transaction. Maryland REALTORS® stands behind the need for the Seller and the Buyer to be represented by a professional who knows the market, the communities, how to get a home ready for sale, and how to get a Buyer to qualify for financing. Consumers benefit when both sides are represented by a REALTOR®, each looking out for the best interests of their clients. Maryland REALTORS® supports complete transparency in the real estate transaction, as our Exclusive Buyer-Tenant Residential Brokerage Agreement has done, since 2016. NAR, NAR Settlement Share Comments are closed.