Countdown to August 17: How to Prepare

You’ve probably heard it over and over by now, but the practice changes required under the NAR settlement agreement go into effect on August 17, 2024. Here’s a quick list of items to talk to your broker about to make sure you’re prepared.

Practice Changes Checklist

1. Update your listing agreement.
   • Use the Texas REALTORS® forms revised in June to meet the requirements.
2. Amend listing agreements in effect before August 17.
   • If your previous listing agreement mentions an offer of compensation, amend it.
   • Ask your broker if a separate disclosure can satisfy the requirements.
3. Discuss compensation options with sellers.
4. Learn how your broker wants you to communicate compensation offers off the MLS.
5. Prepare a written buyer agreement.
   • Ensure all new buyer clients/customers sign one BEFORE touring a home.
   • Use the Texas REALTORS® forms revised in June to meet the requirements.
6. Review your existing buyer rep agreements.
   • Check if agreements signed before August 17 contain items 1-3 below; if they do, they don’t need amending – a separate disclosure can satisfy item 4. Ask your broker if you’re unsure.
     1. A specific and conspicuous disclosure of the amount or rate of compensation the Participant will receive or how this amount will be determined, to the extend that the Participant will receive compensation from any source.
     2. The amount of compensation in a manner that is objectively ascertainable and not open-ended.
     3. A term that prohibits the Participant from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer.
     4. A conspicuous statement that broker fees and commissions are not set by law and are fully negotiable.
7. Explain the written buyer agreement to buyers.
   • Anticipate questions from buyers who haven’t signed an agreement before.
   • Get comfortable discussing compensation.
   • Know your value and be ready to communicate it to customers.

For more information on the practice changes and how you can be ready, check out facts.realtor.