The California Association of Realtors (CAR) recently ran an open letter in a number of local newspapers – the letter discusses changes that are underway as a result of a settlement agreement in connection with the National Association of Realtors (NAR) Cooperative Compensation Model Rule. The letter addresses confusion about buying and selling real property once the agreed changes go into effect.
The California Association of Realtors Open Letter
The CAR letter appears in the Los Angeles Times, San Francisco Chronicle, Mercury News, Sacramento Bee, and in the California editions of the Wall Street Journal and The New York Times. The letter emphasizes two significant changes that will result from the settlement of the lawsuits:
- 1. The first change is that properties listed for sale in the multiple listing services (MLS) will no longer include an offer of compensation to agents representing buyers.
- 2. The second change pertains to the use of buyers’ agents. In general, before searching for a property to purchase, buyers who want representation by a licensed real estate professional will need to reach an agreement with the licensed professional. The agreement will detail the services the agent will provide and how the agent will be compensated for their efforts.
For licensed real estate professionals, watch for further updates from CAR (member website) and NAR as the situation continues to unfold.
Here’s a direct link to the open letter PDF file.
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