PEMBROKE PINES, Fla. – If buying a house didn’t already involve signing a whole bunch of paperwork, get ready for the new norm.
Now, before you buy a home, and before you even go a look at a new place, you’ll be signing more paperwork.
That includes a pre-touring agreement, a showing agreement, a buyer’s broker agreement, a listing agreement,and then the compensation agreements, from seller-to-buyer’s-broker or seller’s broker-to-buyer’s-broker.
“It’s going to be a little crazy for the buyers to adjust, because it is a change,” said real estate broker Paulina Hurtado.
This is all the result of a more than $400 million settlement announced earlier this year by the National Association of Realtors changing real estate commission rules and industry policy as we know it.
“The biggest impact that you’re going to have is buyers getting accustomed to signing a written agreement, which they didn’t have to sign before in order to tour a home,” said Hurtado.
Hurtado said what was previously customary, sellers paying a buyer’s agent, is no more. Sellers can now choose to enter into a written agreement to pay a buyer’s agent.
But there is a flip side to that coin.
“Now the buyer is going to have to sign the written agreement and then negotiate how compensation is going to be offered to the buyer’s broker,” said Hurtado.
“As in, the person helping me buy the house?” asked Local 10 News’ Layron Livingston.
“Yes,” replied Hurtado.
She said all of those fees, or commissions, will be and have always been negotiable.
“How much are they getting compensated, whether it’s a percentage amount, whether it’s a flat fee, whether it’s an hourly rate, that has to be very specific on the written agreement,” said Hurtado.
This is all to hopefully make the process more transparent.
The new rules, which go into effect Saturday, only apply to residential transactions, sales, not leases. This does not impact commercial real estate.