New Real Estate Commission Rules Now Effective

New real estate rules effective August 17, stemming from a $418 million settlement with the National Association of Realtors (NAR), alter how commissions are handled in home sales. Sellers no longer have to pay both the listing and buyer's agents by default, and can choose whether or not to cover the buyer's agent commission. Buyers must now sign detailed representation agreements with their agents, outlining commission terms early in the process. These changes aim to increase transparency and reduce inflated commissions, potentially lowering consumer costs by up to 30%. However, the transition may cause initial confusion and resistance among buyers and sellers, with real estate agents needing to adapt to additional paperwork and negotiation responsibilities.