Update to eXp Realty’s Listing Agreement Reflects Upcoming NAR Rules

The real estate industry is abuzz with changes to the way agents are paid, and eXp Realty has taken a notable step by updating its listing agreement to reflect the upcoming National Association of Realtors (NAR) rules. The new agreement states that eXp Realty does not share commissions with buyer’s brokers, sparking a flurry of debate online.

Background

As new rules regarding agent pay loom on the horizon, eXp Realty has updated its listing agreement to ensure its agents are "best protected." The brokerage has made it clear that it will not engage in broker-to-broker compensation, instead offering a menu of options to its listing agents.

What Does the Update Mean?

The updated listing agreement reflects the new NAR rules, which bar listing agents from making offers of compensation to buyer’s agents in Realtor-affiliated multiple listing services. However, this does not mean that buyers’ brokers cannot collect compensation from sellers. The agreement allows for concessions from sellers, which could be used to pay for brokers among other things.

Industry-Wide Changes

The industry is currently grappling with the implications of the new NAR rules. Powerful organizations such as Bright MLS and California Regional MLS (CRMLS) are moving to make concessions easier to offer, while private companies are emerging to provide solutions for listing agents and their clients to make offers of compensation to buyer’s reps.

Concessions: A Possible Solution

Concessions represent one possible answer to the question of how buyers’ agents will be paid in the near future. Last week, Ed Zorn, vice president and general counsel of CRMLS, suggested that concessions may "clump around the entry-level market." The ultimate answer could be a combination of solutions, and the industry is still figuring out the best approach.

What’s Next?

The way this ultimately pans out remains to be seen. During a podcast appearance, eXp Realty CEO Leo Pareja characterized the updated form as a reflection of "our best interpretation of the rule changes." He emphasized that the company is committed to providing clarity and context in the ever-evolving subject of agent compensation.

FAQs

Q: What does the updated listing agreement mean for buyers’ brokers?
A: The agreement does not bar buyers’ brokers from collecting compensation from sellers. Instead, it allows for concessions from sellers, which could be used to pay for brokers among other things.

Q: What is the significance of the new NAR rules?
A: The rules bar listing agents from making offers of compensation to buyer’s agents in Realtor-affiliated multiple listing services.

Q: How will buyers’ agents be paid in the near future?
A: The industry is still figuring out the best approach, with concessions representing one possible solution.

Q: What is eXp Realty’s stance on broker-to-broker compensation?
A: eXp Realty has made it clear that it will not engage in broker-to-broker compensation, instead offering a menu of options to its listing agents.

Conclusion

The real estate industry is undergoing significant changes, and eXp Realty’s updated listing agreement is just one example of the evolving landscape. As the industry navigates the new NAR rules and the future of agent compensation, it’s clear that there is still much to be determined. However, one thing is certain: the industry will continue to adapt and evolve to meet the changing needs of its clients.

Author: www.inman.com

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