Florida Realtor • November/December 2024 • How to Stay Compliant in Sticky Situations

Tips for understanding and implementing the new policies and forms after the NAR compensation lawsuit settlement.

When an agent at an open house was approached by a buyer and offered a bonus if she could close the deal for the buyer at a specific lower price, the agent called her broker for advice.

“I told her right away that if it smells fishy, stay away from it,” says Glenn Stein, broker-owner with Realty Executives in The Villages and a real estate coach with Tom Ferry. “The problem in that situation is that the agent represented the seller and wouldn’t be doing her fiduciary duty by her client if she convinced him to accept a lower price.”

Stein anticipates more calls from both listing and buyer’s agents in the coming months as everyone adapts to new policies and forms after the NAR commission lawsuit settlement.

“We’ve created more than 30 webinars and videos to help agents understand the new practices and how to explain them to clients,” Stein says. “The compensation must be stated in the buyer broker agreement, but buyer’s agents don’t need to reveal that to the seller’s agent right away.”

However, eventually the compensation agreement needs to be reviewed by the title company and the mortgage company if it’s part of seller concessions, Stein explained.

Stein’s tips for agents to keep themselves and their clients in compliance with new rules include:
• Get informed about new practices and forms from Florida Realtors® and NAR, broker information sessions or coaching.

• Understand fiduciary duty. In Florida, agents are assumed transaction brokers, meaning they represent the transaction and not the buyer or seller, unless a single-agent disclosure is signed by the parties.

• Don’t assume that anyone in the public knows what’s happening and why. Consumers mostly just need to know what this means for them in terms of buying and selling. They don’t need to know the entire NAR story.

• Review all forms with buyers and sellers, and make sure everyone understands that compensation is negotiable.

• Call your broker in any situation that you don’t understand or about any deal that seems complicated.

• Understand that the MLS is no longer a safety net to prove the amount of compensation you expect. You’ll need signed forms to share with the title company, such as a listing agreement, a buyer brokerage agreement or a compensation form.

“During this time of transition in the real estate industry, it’s important to really connect with your broker to make sure you’re operating ethically, legally and profitably,” Stein says.