THE NEW MASSACHUSETTS COMMISSION RULE: WHAT HAS CHANGED?
As of August 2024, sellers are no longer required to pay the buyer’s agent compensation. This responsibility now belongs to the buyer. This change promotes transparency and fairness in real estate transactions, clarifying who pays for what services.
Now, buyers must adjust their budgets to cover these expenses. They need to plan for agent fees in addition to the down payment, closing costs, and other expenses. This will mean rethinking their overall purchasing strategy and negotiating agent compensation more carefully for some. This will happen when sellers don’t offer buyer agent compensation. A buyer will include the buyer agent’s compensation in the offer.
Transparency is now more critical than ever. Before any transaction starts, all terms of agent compensation must be clear. This change emphasizes open communication between buyers, sellers, and agents to ensure everyone knows their financial obligations. Buyers must also sign formal agreements with their agents before touring homes. This step ensures both parties understand the compensation structure upfront, avoiding unexpected fees. These agreements typically include details like the buyer agent’s fees, rebates, or credits and how to cover these costs.
Previously, potential buyers could look at homes without a formal agreement with an agent. Under the new rules, a real estate agent cannot show a property without a written buyer agency contract outlining the agent’s pay.
Why Sign a Fee Agreement Before Home Tours?
New industry regulations require confirming our fee upfront, ensuring transparency and a seamless experience.
Can I Work with Multiple Agents?
Exclusive Agreements – Work only with one dedicated agent throughout your journey.
What If I Find a Property Myself?
Your agreement follows the process. Exclusive contracts require working through your agent.
What If I’m Unhappy with My Agent?
Most agreements allow termination under specific terms.
At William Raveis, we’re committed to exceptional service. Please work with us in our three specialties, Mortgage, Insurance, and Real Estate, and receive additional benefits. Let’s schedule your consultation today!
Websites for your review:
- www.nar.realtor/the-facts/consumer-guide-to-written-buyer-agreements
- www.marealtor.com/settlement
- www.mass.gov/guides/the-homebuying-process-in-massachusetts
