It's not a law. Please re-watch the old Schoolhouse Rock video.
It is a change in the "Participation Rule" of the National Association of Realtors. This was changed as the result of a class action lawsuit by some home sellers in the midwest that felt the system was rigged in that sellers were required under the old rule to pay at least something to buyers agents in order to be listed in the MLS. They argued that 'big real estate' leveraged that rule to artificially inflate prices. Now, the revised rule states that seller is not REQUIRED to compensate buyer's agent if they don't want to (to list in MLS). As such, a new form for buyer's agents has been developed so that they get paid one way or another for assisting buyers (buyer's who choose to use an agent to help them find a house). This payment will be either directly from the buyer for an agreed upon amount or percentage or from the seller if the seller CHOOSES to include buyers compensation. Or it could be a combination of the two depending on what the seller is offering.
The government was not a party in the lawsuit. The government has passed no laws regarding this. This is an industry thing.
I am not a realtor...just someone who can read.
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