Welcome to the Future of Residential Real Estate (Commissions Decoupled): Buying, Renting, and Selling a Home in Metro Phoenix

📣 Today (August 17, 2024) is the final deadline for all Multiple Listing Service (MLS) systems and brokerages nationwide to implement the changes required via the NAR Lawsuit Settlement. These changes have been effective since the 1st of August 2024 for our region – REALTORS® working with the Arizona Regional Multiple Listing Service (ARMLS).

 

📑 All Buyers and Renters who wish to be represented by their own agent will need to hire and sign a Buyer/Tenant-Broker Exclusive Employment Agreement before touring any home including any virtual showing. You may also hire an agent to show you just one or multiple homes, or for one or multiple days, or exclusively for a set period. This is not a requirement when you visit an Open House event from any Listing Agent/Brokerage.

 

Buyers and Renters may choose to contact the Listing Agent and work directly with them either via Dual-Agency, or as an Unrepresented Buyer/Renter.

💰 A Listing Agent will no longer collect commission from the Seller and share part of that with the Buyer’s/Renter’s Agent. Possible Broker Compensation offered by the Seller/Landlord will not be visible within any MLS. The Seller or Landlord may choose upfront to offer Broker Compensation indicated from their Residential Listing Contract - Exclusive Right to Sell/Rent agreement. Both can also choose not to offer Broker Compensation but can entertain the possibility after having gone onto the open market with submitted offers requesting Broker Compensation.

 

1️⃣ Broker Compensation from the Seller can be paid to a Buyer’s Agent/Brokerage either directly to the Buyer’s Agent/Brokerage and/or as a Credit to the Buyer from the Seller at Close of Escrow.

 

2️⃣ Broker Compensation from the Landlord can be paid to a Renter’s Agent/Brokerage by settling an invoice submitted to the Landlord by the Renter’s Agent/Brokerage after closing/move-in.

💡 All or a portion of the fee your agent charges for their services rendered might be supported by the Seller/Landlord offering Broker Compensation, which will be discovered by your Buyer’s/Renter’s Agent once you’ve decided on the home, you’d like to make an offer on. This possible Broker Compensation will not be displayed from any MLS nationwide requiring the Buyer’s/Renter’s Agent to connect with the Listing Agent to establish whether the Seller/Landlord is offering Broker Compensation.

 

Broker Compensation due to the Buyer’s Agent/Brokerage at Close of Escrow can be paid in one of three ways, or a combination of the following:

 

1️⃣ Directly from the Buyer (i.e., the Seller is not offering Broker Compensation).

 

2️⃣ Directly from the Seller (i.e., the Seller is offering Broker Compensation).

 

3️⃣ Credit to Buyer from Seller (e.g., Seller is offering some Broker Compensation but not enough to cover the total obligation to the Buyer’s Agent/Brokerage identified from the Buyer-Broker Exclusive Employment Agreement).

 

Broker Compensation due to the Renter’s Agent/Brokerage at closing/move-in can be paid in one of three ways, or a combination of the following:

 

1️⃣ An invoice from the Renter’s Agent/Brokerage to the Renter (i.e., the Landlord is not offering Broker Compensation).

 

2️⃣ An invoice from the Renter’s Agent/Brokerage to the Landlord (i.e., the Landlord is offering Broker Compensation).

 

3️⃣ Two invoices to both the Renter and the Landlord (i.e., the Landlord is offering some Broker Compensation but not enough to cover the total obligation to the Renter’s Agent/Brokerage identified from the Tenant-Broker Exclusive Employment Agreement).

 

✅ The “ask” of Broker Compensation will be documented within the Seller Compensation Addendum in concert with the Real Estate Purchase Contract, or Residential Lease Agreement respectively.

 

NOTE: Broker-to-Broker compensation is strictly forbidden with eXp Realty.

 

📚 NAR Settlement Practice Changes: New Flow of Compensation Effective August 1, 2024
📚 Learn about "179 Ways REALTORS® Are Worth Every Penny".
📚 Learn about "105 More Ways REALTORS® Are Worth Every Penny".
📥 Download ‘FAQs: Buying, Financing, Renting, and Selling Residential Real Estate’.
🔎 View the ‘Residential Listing Contract - Exclusive Right to Sell’ example.
🔎 View the ‘Buyer-Broker Exclusive Employment Agreement’ example.
🔎 View the ‘Real Estate Purchase Contract’ example.
🔎 View the ‘Seller Compensation Addendum (Buyer)’ example.
🔎 View the ‘Consent to Limited Representation (Dual Agency)’ example.
🔎 View the ‘Unrepresented Buyer Disclosure’ example.
🔎 View the ‘Residential Listing Contract - Exclusive Right to Rent’ example.
🔎 View the ‘Tenant-Broker Exclusive Employment Agreement’ example.
🔎 View the ‘Residential Lease Agreement’ example.
🔎 View the ‘Seller Compensation Addendum (Tenant)’ example.

 

📆 Schedule time with me to address any questions and concerns about buying, renting, and selling residential real estate in the Valley of the Sun (Metro Phoenix). 🏠 We'll get you where you need to go! 🚀

 

☎️ Mobile 602-517-4463
📧 Mail@JasonPetersonRealtor.com
🌐 JasonPetersonRealtor.com