States Push Back Against NAR Buyer Agent Rule

0:00Several states are now pushing back on a key rule tied to the National Association of Realtors Settlement. That rule requires buyers to sign an agreement with an agent before they can tour a home, but not everyone agrees with it. I'm Kathy Fedky, and this is Real Estate News for Investors. This is Real Estate News with Kathy Fedky. According to Housing Wire, two states have already passed laws that go in the opposite direction. Mississippi and Alabama now allow buyers to tour homes without signing an agreement first. Under these new laws, agents don't need a signed agreement just to show a home. The agreement is only required later. For example, before submitting an offer, or getting paid for services. This directly conflicts with the Nar Settlement rules, and more states may follow. Some makers in Wyoming, West Virginia, and Oklahoma are all considering similar bills. These proposals would give buyers more flexibility.

1:02In some cases, buyers could even submit an offer without signing a formal agreement. But there's a trade-off. Without a signed agreement, buyers may not get full representation. Instead of being a client, they may be treated as a customer. That means fewer protections and fewer legal duties from the agent. At the same time, not every state is loosening the rules. Texas and Oregon are moving in the opposite direction. They now require written agreements earlier in the process. In Texas, agents can open the door to a home, but they can't give advice without a signed agreement. The rules around agent relationships are changing, and they will vary depending on where you're buying. If you're working with an agent, it's more important than ever to understand your agreement. And if you are an agent, well, even more important to understand the laws of your state. I'm Kathy Fedky, and this is Real Estate News for Investors.

2:02The views and opinions expressed in this podcast are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities, or to make or consider any investment or a course of action. For more information, go to newsforinvestors.com.