Real estate industry adjusts to new rules

The $418 million NAR settlement has sowed some chaos as new rules are in place; local brokers and agents see new trends, with some of them raising alarm bells

Local Realtors and brokers are adapting to new rules established from a multi-million dollar settlement against the National Association of Realtors and other brokers. File photo

NORTH COUNTY — The fallout from the massive National Association of Realtors lawsuit is coming into focus.

The settlement upended the industry, although local industry experts believe it could end up being a positive. However, there are significant challenges and trends forming between agents, brokers and their respective clients.

Since the new rules came into place in mid-August, challenges include the potential for more dual agency with agents or brokers, unrepresented buyers, creating an unintentional agency with an agent or buyer, legal issues and more, according to Peter Bolande, president of the North San Diego County Realtors group.

“Buyers now need to sign a written agreement before touring a home, even virtually, with an agent,” he explained, although open houses are not included as part of the settlement. “The buyers, rather than having to fully depend on the sellers to pay the commission, they are negotiating that. They have to sign a contract, even before they see a single home, of what they are going to pay that agent.”

As for open houses, Bolande said some agents may have individuals, or couples, sign a non-agency disclosure to ensure agency has not been established.