In the wake of the National Association of Realtors (NAR) preliminary settlement agreement, Georgia real estate agents face new challenges in representing buyers. This comprehensive guide addresses how to show properties without information on seller-side compensation while avoiding accusations of steering. We’ll explore the implications of the NAR settlement, discuss best practices for buyer representation, and introduce a protective form used by Maximum One® Companies.
Understanding the NAR Settlement’s Impact on Georgia Real Estate
The recent NAR preliminary settlement has significantly altered how real estate transactions are conducted, particularly regarding compensation disclosures. Georgia real estate agents must adapt to these changes to ensure compliance and maintain ethical standards.
Key Changes in Compensation Disclosure
– Seller-side compensation information is now prohibited in NAR-member MLS listings
– Buyers must sign an agreement prior to touring properties
– Agents need new strategies to navigate showing properties without knowing co-op fees
What is Steering in Real Estate?
Steering is the unethical and illegal practice of influencing a buyer’s choice of properties based on protected characteristics or an agent’s personal interests. In the context of the NAR settlement, concerns have arisen about potential steering based on compensation.
Avoiding Accusations of Steering
To protect themselves from false allegations of steering, Georgia real estate agents should:
1. Show all properties that meet the buyer’s criteria, regardless of compensation information
2. Document all property options presented to buyers
3. Use standardized forms to record buyer decisions about viewing properties
Showing Properties Without Co-op Fee Information
Under the new NAR guidelines, Georgia real estate agents must adapt their practices when showing properties listed in NAR-member MLSs.
Best Practices for Buyer’s Agents
1. Inform buyers that they will be compensated regardless of the listing’s co-op fee
2. Have buyers sign an agreement before touring properties, as required by the NAR settlement
3. Present all suitable properties to buyers, irrespective of compensation details
Buyer’s Agent Compensation in the New Landscape
The NAR settlement has shifted the compensation model, but it’s crucial to remember that buyer’s agents will still be paid for their services.
Key Points on Compensation
– Compensation may come from various sources, including the buyer, seller, or a combination
– Agents should discuss compensation structures with buyers early in the relationship
– Transparency about potential compensation scenarios is essential
Sharing Compensation Information with Buyers
While MLS listings can no longer display compensation details, agents can still obtain and share this information with their buyers.
Process for Obtaining Compensation Information
1. Contact the listing agent or broker to inquire about seller-side compensation
2. Present all compensation information to the buyer objectively
3. Allow the buyer to make informed decisions about which properties to view
Buyer’s Decision-Making Process
It’s crucial to emphasize that the decision to view or not view a property should always be the buyer’s choice, not the agent’s.
Reasons Buyers May Choose Not to View Properties
– Location preferences
– Property features
– Price range
– Personal schedules
– Compensation structures (if disclosed and discussed)
Protecting Agents from Steering Allegations
To safeguard against potential accusations of steering, agencies like Maximum One® Companies have developed protective forms for their agents.
Elements of a Protective Form
1. Documentation of all properties presented to the buyer
2. Buyer’s acknowledgment of receiving information about multiple properties
3. Buyer’s reasons for choosing to view or not view specific properties
4. Clear language stating that the agent has not steered the buyer in any way
Maintaining Fair Housing Compliance
In navigating the new landscape of buyer representation, Georgia real estate agents must remain vigilant about fair housing laws.
Tips for Fair Housing Compliance
1. Present all properties that meet the buyer’s criteria, regardless of neighborhood demographics
2. Use consistent procedures for all clients
3. Document all interactions and decisions objectively
4. Avoid making assumptions about a buyer’s preferences based on protected characteristics
Conclusion: Adapting to the New Real Estate Landscape in Georgia
The NAR settlement has brought significant changes to how Georgia real estate agents represent buyers. By understanding these changes, implementing transparent practices, and using protective documentation, agents can continue to provide excellent service while safeguarding themselves from potential legal issues.
Remember, the key to success in this new environment is clear communication with buyers, thorough documentation of all interactions, and a commitment to ethical, unbiased representation. By adapting to these new guidelines, Georgia real estate agents can navigate the post-NAR settlement landscape with confidence and professionalism.
For more information on real estate practices in Georgia, visit the Georgia Real Estate Commission website.
