Special Report: Lawsuit Forces Changes in Way Real Estate Agents Are Paid
As of Aug. 17, it is no longer standard practice for home sellers to pay a commission to the buyer’s agent in addition to their real estate agentBy Aaron GiffordTeri Beckwith, a licensed salesperson who has sold homes in Oswego County for 30 years, said the new regulations could limit the number of offers. “Buyers are just not used to paying their agents. It doesn’t make much sense right now.”Realtors in Central New York and across the nation hope new regulations that change the way buyers’ agents are paid won’t turn their industry upside down.As of Aug. 17, it is no longer standard practice for home sellers to pay a commission to the buyer’s agent in addition to their real estate agent.Instead, written agreements with buyers’ agents specifying how much they will be paid must be established ahead of time.In addition, compensation rate offers to buyers’ agents cannot be disclosed on the Multiple Listing Service, which most sellers and buyers access to view available properties.This regulation follows the $418 million settlement the National Association of Realtors paid out to a group of Missouri homeowners who argued in federal court that the long-accepted practice of paying sellers’ agents led to unnecessary (more…)