Is A Commission Agreement Now Required To 'Tour' A Miami Condo Listing?
Following the National Association of Realtors® $418 million settlement to resolve "antitrust claims," buyers working with NAR members are required to sign commission agreements in certain situations.
Buyers who are looking to purchase a condo in Miami, South Florida or anywhere else in the sunshine state better have a pen handy if they want the assistance of a Realtor®.
That’s the takeaway from a nearly 27-minute video featuring Juana Watkins, the general counsel for the Florida Realtors® association, that was posted July 30, 2024, on YouTube under the account name “Florida Realtors Tube.”
Florida’s residential real estate industry forever changed this week with the implementation of rule modifications resulting from the National Association of Realtors® $418 million settlement of “antitrust claims.”
The changes - which are the result of “claims brought on behalf of home sellers related to broker commissions” - went into effect throughout the country on Aug. 17, 2024, for the more than 1.5 million-member organization, according to an NAR statement.
The repercussions are huge in Florida where the statewide association has some 238,000 members. Of that, more than 60,000 members belong to the Miami Association of Realtors® and an additional 42,000 members are part of the Broward, Palm Beaches & St. Lucie Realtors® association.
To provide some clarity about when condo buyers can expect to sign a commission agreement going forward, we are going to let Watkins explain some of the changes in her own words in these four video clips.
Realtors “Working With” Buyers
Watch the short clip: https://youtube.com/clip/UgkxrtR-qsZrAW929hRTiWluI40Sgr_MkNmE?si=1Ki8ElW0-v3EvXVs
If you don’t want to watch the clip, here is a transcript of Watkins’ statement:
“How do I determine if I am working with a buyer?” she said. “The working with language is intended to distinguish MLS participants who provide broker services to a buyer - such as identifying potential properties, arranging for the buyer to tour a property, performing or facilitating negotiations on behalf of the buyer, presenting offers by a buyer, or other services for the buyer - from the MLS participant who simply markets their services or just talks to a buyer at an open house, or by providing an unrepresented buyer access to a house they have listed.
“If the MLS participant is working only as an agent of the seller, then the participant is not working with the buyer.
“In that scenario, an agreement is not required because the participant is performing work for the seller and not the buyer.”
Commission Agreement “Does Not Dictate” The Following
Watch the short clip: https://youtube.com/clip/Ugkx148M30cKuNYF9glLevSOu58GUuxWf1pX?si=NS7fKQdZxcDMaEVh
If you don’t want to watch the clip, here is a transcript of Watkins’ statement:
“NAR policy does not dictate the type of relationship the professional has with the potential buyer, and by that I mean agency relationships, like transaction brokers or single agents,” she said. “It does not dictate the term of the agreement. It can be a month, a day. it can be one house or a whole zip code.
“It does not cover the services to be provided. That's completely up to the parties.
“It can be a certain number of showings. It can include negotiations or presenting offers.”
NAR Policy Does Not Set Commissions
Watch the short clip: https://youtube.com/clip/UgkxS90Gs2PeDxGQg6kvQCJoNDhhrqs2vqk0?si=yUbJ_y8C72UGbaO3
If you don’t want to watch the clip, here is a transcript of Watkins’ statement:
“And it [NAR policy] does not dictate the compensation charge,” she said. “Compensation is negotiable. It can be a flat fee, a percentage or whatever rate the parties decide on.”
Realtors® “Touring” Residential Properties With Buyers
Watch the short clip: https://youtube.com/clip/UgkxQ5JeQLamdnfeSMKOOWrSIRJtmnkpWYUD?si=ECsIMJn4rPJXGKE4
If you don’t want to watch the clip, here is a transcript of Watkins’ statement:
“These written agreements must be presented to and signed by buyers prior to touring a property,” she said. “In the Frequently Asked Questions published by NAR on facts.realtor, NAR explains that touring means when the buyer and or the MLS participant - or other agent at the direction of the MLS participant - working with the buyer enters the house.
“This includes the MLS participant or other agent at the direction of the MLS participant working with the buyer entering the home to provide a live virtual tour to a buyer not physically present.
“So, yes, a virtual tour can count as touring a property, according to NAR's Frequently Asked Question number 57.”
This is a link to watch Watkins’ entire presentation regarding buyer-broker agreements following the August 2024 implementation of the NAR settlement.
If you have any additional questions, we suggest you reach out to your attorney or Realtor®.
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