Are you ready for new house-hunting rules? – Whittier Daily News

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A landmark regulation governing how homes are bought and sold in the United States is set to take effect Aug. 17, potentially upending the decades-old home-selling process.

In the past, most home sellers paid both buyer’s and seller’s commissions after the sale closed. Most buyers paid their agent nothing.

Under the deal, the traditional compensation system for agents and brokers could change, and buyers may have to pay commissions themselves.

At a minimum, all home buyers must sign a contract with their agent before the agent can begin showing them homes.

Additionally, sellers’ agents must stop posting commission offers to buyers in the real estate listing database, or MLS. Compensation offers can continue, but cannot be posted on listing services managed by real estate agents.

If you’re thinking about buying or selling a home, we’d love to hear from you. Please take our survey below and let us know how you think the new home search rules will affect you.

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Background

In recent years, home sellers in Illinois, Massachusetts and Missouri have filed class-action lawsuits against the National Association of Realtors and several major real estate chains, arguing that the traditional compensation system keeps real estate commissions artificially high.

Following a federal trial in Kansas City, a jury returned a $1.8 billion verdict against NAR and its co-defendants, leading to an out-of-court settlement in March.

As part of the settlement, NAR agreed to pay $418 million over four years to home sellers and plaintiffs’ attorneys. In addition, it agreed to change its practices that may or may not result in American home buyers paying their own commissions directly to their agents.

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