Minor Impact to GA Buyers & Sellers from NAR Lawsuit

A few weeks in and the lawsuit real estate commission policies from the NAR settlement are not having a noticeable local impact. In Georgia, the changes are mainly administrative and have most to do with advertising buyer agent compensation. Buyer brokerage agreements were required prior to the settlement, so not a big change there. The main changes in Georgia were added transparency in the forms, further clarity on payment of agent compensation, and that MLS services no longer advertise if the seller is offering buyer agent compensation.

And because the MSM is not accurately detailing things - sellers have not stopped offering buyer agent compensation. We have not had a single occurrence, nor have any of the agents in our orbit. Our sellers continue to offer buyer agent compensation as do those of other agents we talked with.  The difference is how it is negotiated. The MSM is gaslighting (as usual) with stories that are simply disingenuous; leading with clickbait as opposed to actual stories from the field.

A quick review of what to expect moving forward when buying or selling real estate in Georgia. These are familiar but very important points.

General Practice

• Real estate agents handle every aspect of the transaction. Showings, contracts, negotiations, contract management right to closing.
• The real estate attorney does not represent either party. The closing attorney represents the lender’s interests and ensures that the property legally transfers as contractually obligated.
• No change to agent licensing requirements. There remain no “real world” experience minimums, no apprenticeship periods, and no production requirements to have a license.
• The MLS services will no longer advertise if the seller is offering buyer broker compensation. Any compensation requests are to be written into the contract and negotiated.

Home Buyers

• Similar to a listing appointment, buyer agents are expected to fully brief buyers and have a signed agreement prior to visiting homes with an agent.
• This agreement outlines services provided as well as the mutually agreed upon buyer broker compensation.

Home Sellers

• The listing agreement will further reinforce that all agent compensation is fully negotiable.
• Sellers have the discretion to offer buyer brokerage compensation as/if desired.

Those are key points, most of which already existed in Georgia. Given the interest in the settlement, class action status, the involvement of the DOJ, and oversight by several agencies, brokerages are working to be fully compliant. This is a national change that is underway...

While the changes became official on 8/17/24, many firms started the new requirements earlier this summer. To this point, it’s largely business as usual. Our buyers understand the value that we bring to them and the home buying process. So far, on every buyer’s side contract written, the seller has paid the buyer agent compensation. There has been no pushback from sellers as they clearly see the value of working with a professional buyer agent. Much of the social media hysteria ahead of these changes was unfounded, as expected. While there is an adjustment period to the new administrative parts, the “hands in the dirt” side is essentially unchanged.    

It’s often repeated and here it is again – work only with full time, professional agents. In Georgia there are no “bumpers” to keep you out of trouble. There is NO FIDUCIARY responsibility for agents in Georgia. This is discussed nationally but does not apply in GA. There is no attorney involvement at any level until the closing table. Take a few minutes and Google every agent, verify production, verify everything and meet with them BEFORE signing anything. Treat the sale or purchase of a home like the business transaction that it is!

Please feel free to reach out at any time to discuss things. We are happy to sit down and explain everything about agent compensation and the real estate transaction process in GA.

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