1. Split Commission Model: Starting August 17, 2024, commission information will no longer be communicated via the MLS (Multiple Listing Service). Compensation agreements based on commission must now occur off-MLS through negotiation and consultation between real estate professionals. These agreements may still follow the traditional split commission model, where real estate agents are paid a commission based on the home's final sale price. This commission is typically a percentage agreed upon between the seller and the listing agent. Using this payment model, the buyer's agent would receive a portion of the commission, as arranged between the listing agent and the buyer's agent. Typically, all commission payments go through the broker managing the brokerage where the agent works. From there, the commission is split between the broker and the agent according to their internal agreement. 2. Direct Payment from the Buyer: The buyer may agree to pay their agent directly. This can be a flat fee, an hourly rate, or a percentage of the purchase price. 3. Negotiated Arrangements: The buyer and agent can negotiate other customized compensation agreements. Before starting to tour homes, you MUST have a signed written buyer's agreement with your agent. This agreement will outline your agent's services, the compensation structure, and other terms of your working relationship. Recent regulation changes have given greater flexibility for agent compensation methods, reinforcing the importance of entering into a written buyer's agreement. This formal agreement ensures both parties are clear on expectations and protects your interests throughout the home-buying process.
WHY NOT ALL REAL T ALL REALTORS® ARE CREATED EQUAL
19
Powered by FlippingBook