NWIA Reminds Members and Consumers of NAR Practice Change Implementation on August 17, 2024

The Northwest Iowa Regional Board of Realtors® reminds members, real estate professionals and consumers that on August 17, 2024 the practice changes following NAR’s Settlement Agreement that would resolve claims brought on behalf of home sellers related to broker commissions will be implemented across the country. Locally, these practice changes will occur on August 12, 2024.

Realtor^® MLSs (those owned exclusively by one or more Realtor ^® Associations) – must implement the changes by this date to remain in compliance with NAR policy.

Under the settlement, the following practice changes will take effect:

• Offers of compensation will be prohibited on Multiple Listing Services (MLSs). Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Offers of compensation help make homeownership and the benefits of professional representation more accessible to buyers, including first-time homebuyers, increase homeownership opportunities for historically underserved groups, and benefit sellers by expanding the potential buyer pool. and ensuring they receive the best offer possible for their property.
• Agents working with a buyer will enter into a written buyer agreement before touring a home. This is required by Iowa law, and was effective July 1, 2024. The practice changes do not require an agency agreement or dictate any type of relationship. Resources are available to assist with implementation of the settlement terms—such as tips on clarity and emphasizing consumer choice and a “Written Buyer Agreements 101” resource.

“Realtors® provide exceptional professional service and expertise to both buyers and sellers, and we’re excited about these changes. Our members always enjoy great conversations with our customers as we help them achieve their home and property ownership goals,” said Misty Szczech, President of the Northwest Iowa Regional Board of Realtors® and agent with Exit Realty in LeMars.

Consumers can find additional information on what these changes mean for their homebuying and selling experiences in NAR’s buyers and sellers guides. For NAR members, the practice changes are outlined in detail here, and detailed information is available in NAR’s FAQ. Please visit facts.realtor for the latest updates on the settlement and practice changes.