The Real Estate Board of New York (REBNY) is introducing changes to buyer’s agent commission rules, effective January 1, sparking reactions among agents.
Under the new rules, listing brokers will no longer pay buyer’s agents; instead, sellers will directly compensate them. The rule also requires listing agreements to clearly outline the seller’s offer of compensation to buyer’s agents.The aim is to enhance transparency and consumer confidence.
While some agents welcome the transparency, Some agents oppose the change, fearing it gives buyers’ agents too much leverage.
This change comes as two major class-action cases involving buyer’s agent commissions are being fought by the National Association of Realtors, Keller Williams, and HomeServices of America.
The NAR “participation policy,” which mandates that listing brokers pay buyer’s agents, is at the heart of the dispute. The firm is accused of breaking antitrust rules and collaborating with brokerages to raise agents’ compensation, according to the plaintiffs, property sellers in Missouri and Illinois.
Overall, REBNY’s revisions seek to promote transparency in New York’s real estate landscape.
