On August 17, 2024, a significant shift occurred in California real estate due to new regulations from the National Association of Realtors (NAR). These changes, driven by a legal settlement, aim to enhance transparency and reshape industry practices.
Key aspects of the new law include the elimination of mandatory compensation offers from listing brokers or sellers to buyer brokers within the MLS (Multiple Listing Service). This change is designed to foster more equitable and competitive practices. Additionally, the law mandates that MLS participants working with buyers must have a written agreement in place before property tours begin, ensuring clarity and commitment in the buyer-agent relationship.
MLSs are also required to remove broker compensation information and prohibit the creation or support of any non-MLS platforms that facilitate compensation offers. These changes reflect a broader effort to prevent conflicts of interest and promote a more open marketplace.
These updates are part of a broader settlement and must be fully implemented by September 16, 2024, with REALTOR®-owned MLSs expected to comply by August 17, 2024 (sources from NowBam, www.nar.realtor).
If you have any questions regarding these changes contact your local real estate expert today.
