[CoachKandSportsguy]

Originally Posted by Snakster66

Since the new rule removes the requirement to pay anything to a buyer agent (as a seller), then you should be all for it. Not really sure what your beef is.

The new rule does not remove the requirement to pay a buyer agent. That's misrepresenting/over simplifying the new rules.

The new rule requires that the buyer's agent have a written legal agreement, and have it visible at transaction to settle the commission at closing.
The new rule requires that the selling agent's commission and any buyer's agent commission be stated in the selling agent's agreement for settlement at close.

The new rule prohibits buyer/seller agent agreements to be hidden on the MLS site and not visible to neither the seller nor the buyer at closing. The new agreement also prohibits the publishing of commissions available by the seller to eliminate the buyer's agent from steering buyers to higher commission sellers for the buyer's agent commission interest.

The goal of the new rule is to eliminate the inherent conflicts of interest of the current MLS practices, and to put all compensation rules into legal documents for transparency and payment at settlement, for the benefits of the consumer (the buyers and sellers)

[ron32162]

Are you sure. 90% of Florida listing contracts the seller signs say you are working with a transaction Broker. That's just a fancy way of saying (duel agent) but legal. Entire commissions are ALWAYS paid to the listing Broker Its not something you can direct. If it is put in the MLS the broker pays the selling side a % of the commission of what you agreed to pay the listing Broker or it can not be placed in the MLS.

[CoachKandSportsguy]

Originally Posted by ron32162

Are you sure.

me, not sure because I am not a lawyer, not a real estate agent, just another TOTV meme poster

but a FL realtor does a nice job of explaining the implementation / execution of the new rules / NAR agreement.

New MLS Rules to Take Effect Aug. 8 - Dayton REALTORS(R)

YMMV

[Bay Kid]

Originally Posted by Normal

I believe a free market is everything, but the escalating of prices because of the inclusion of flat commission fees in pricing was unsustainable. Besides, now more will soon be able to afford housing.

Commission fees are not the reason for higher prices. Homes will not be more affordable because of this government interference.

[candacev]

Originally Posted by Glowing Horizon

Since the MLS cannot state how much the seller will pay to the agent, how is a buyer informed? Does a buyer sign a separate agreement for each property shown to them since the amount of the seller’s contribution to the agent varies?

The listing agent will provide the buyer's agent that information, whether the seller is willing to compensate or not and how much. Bottom line is agents are going to have to answer their phones and email

[candacev]

Originally Posted by retiredguy123

I'm confused by your post. The law is clear that, to be a transaction agent, the agent needs to have prior written consent to change to a transaction agent. You can presume anything you want, but if you don't have the prior written consent of the seller, you are not a transaction agent. That is a fact stated in the law.

Please see Florida Statute that is in post 62

[Normal]

Originally Posted by Bay Kid

Commission fees are not the reason for higher prices. Homes will not be more affordable because of this government interference.

If commissions are tacked on to a price tag for a home, how does that not increase the cost of purchase, or the comp price for a neighborhood? If a seller wants 400 K for a house and they charge 424 K for a house, the new comparison is 424 K. The increase would be 6% additional in “value” to satisfy the exorbitant amount charged by an agent.

[retiredguy123]

Originally Posted by candacev

Please see Florida Statute that is in post 62

I did read Post No. 62. The same law states that the agent needs the "prior written consent" before they can act as a transaction agent. It even includes a consent form for the seller to sign. As a seller, I don't provide the written consent. An agent can "presume" to be a transaction agent, but without the seller's consent, they cannot act as a transaction agent. Are you reading something else???

[candacev]

Originally Posted by retiredguy123

I did read Post No. 62. The same law states that the agent needs the "prior written consent" before they can act as a transaction agent. It even includes a consent form for the seller to sign. As a seller, I don't provide the written consent. An agent can "presume" to be a transaction agent, but without the seller's consent, they cannot act as a transaction agent. Are you reading something else???

In Florida, we are Transaction brokers unless we transition to a single agent or non representation. Chapter 475 of Florida Statutes. What you are quoting used to be the case but that statute was changed at least 15 years ago.

[BrianL99]

Seeing as the TOTV is full of such experts on the NAR settlement and how it's going to impact real estate commissions, how about this?

What's to prevent Sally Love Real Estate (one of the larger brokers in TV), from adopting a policy of offering a minimum of a 2.5% "Buyer's Broker Commission" upon the sale of any home they List? I think that's how I'd do it, if I still owned a real estate office.

As long as they don't post that information on the MLS they are in compliance. [for those of you who are going to disagree that approach is compliant, I've attached a screen shot from the NAR site.]

BTW, one thing that everyone is forgetting about this settlement, is it won't be approved by the Court until November, 2024. Until November, we're in a sort of "trial run".

[retiredguy123]

Originally Posted by candacev

In Florida, we are Transaction brokers unless we transition to a single agent or non representation. Chapter 475 of Florida Statutes. What you are quoting used to be the case but that statute was changed at least 15 years ago.

I am reading from the 2024 Florida statutes. Here is the link.

Statutes & Constitution
:View Statutes
:

Online Sunshine

Please show where I am wrong?

[Plinker]

Originally Posted by BrianL99

Seeing as the TOTV is full of such experts on the NAR settlement and how it's going to impact real estate commissions, how about this?

What's to prevent Sally Love Real Estate (one of the larger brokers in TV), from adopting a policy of offering a minimum of a 2.5% "Buyer's Broker Commission" upon the sale of any home they List? I think that's how I'd do it, if I still owned a real estate office.

As long as they don't post that information on the MLS they are in compliance. [for those of you who are going to disagree that approach is compliant, I've attached a screen shot from the NAR site.]

BTW, one thing that everyone is forgetting about this settlement, is it won't be approved by the Court until November, 2024. Until November, we're in a sort of "trial run".

Here is the issue I believe many sellers would have under the new ruling with hiring a broker that offers a buyer’s commission. The seller would be required to sign a contract with such a broker that would demand a 5-6% commission in order to pay the buyer’s agent. This is the way it has been done for decades and is what got the FTC involved.
I would never hire such a brokerage firm. I would never agree to a transactional agreement as I want my agent to work solely in my best interests. I believe that there will be an abundance of selling agents that will agree to a 2 1/2% commission. The buyers can choose for themselves if they want an agent, and pay for it. Again, time will tell.


I have attached an article that explains why the realtors are unhappy about the new ruling, yet suggests an upside. As you might have guessed, it all comes down to money. Imagine how unhappy the Pony Express was when the railroads started delivering mail. As a business owner (now retired), I learned very quickly that you either adapt to a changing environment or you perish.

Real estate agents are fleeing the field. Is that good for homebuyers? - The Washington Post

[candacev]

Originally Posted by retiredguy123

I am reading from the 2024 Florida statutes. Here is the link.

Statutes & Constitution
:View Statutes
:

Online Sunshine

Please show where I am wrong?

1b on the statute

[retiredguy123]

Originally Posted by candacev

1b on the statute

1b only says that an agent is "presumed" to be a transaction agent, not that they are one.

Did you read the paragraph entitled "CONSENT TO TRANSITION TO TRANSACTION BROKER"? It says that an agent cannot change to a transaction agent without "prior written consent". As a seller, I am not required to provide my consent.

[candacev]

Originally Posted by retiredguy123

1b only says that an agent is "presumed" to be a transaction agent, not that they are one.

Did you read the paragraph entitled "CONSENT TO TRANSITION TO TRANSACTION BROKER"? It says that an agent cannot change to a transaction agent without "prior written consent". As a seller, I am not required to provide my consent.

Did you read it is presumed an agent is a transaction broker unless they transition to be a single agent or non rep? Agree or disagree it really doesn’t matter. That’s what the statute says and that is what we are governed by. If you wish for a brokerage to represent you as a single agent then that brokerage cannot work with a buyer because dual agency is not allowed in Florida. Hence why we are presumed transaction brokers. All these new rules are VERY FLUID at this point and we are all trying to navigate the changes. Ultimately our job is to help buyers and sellers and make the transaction work for both parties to the transaction.