A nearly $2 billion settlement against the National Association of Realtors (NAR) is changing the way commissions are paid during home sales across the country, including here in Florida. The judgment is opening the door for buyers and sellers to approach these real estate transactions differently, allowing real estate attorneys to step in and provide valuable, streamlined support throughout the buying and selling process.
Part of the settlement agreement requires NAR to change the way commissions are handled. Previously, sellers would enter into commission agreements with their agents without the involvement of the buyer or buyer’s agent. The court argued that this practice and using Multiple Listing Services (MLS) to negotiate those agreements without the involvement of the buyer artificially inflated commissions, leading to inflated commissions.
As the handling of commissions shifts, legal professionals with experience in real estate can handle vital aspects of the transaction, including negotiating contracts and performing title work.
How the Commission Rule is Changing
Under the old system, sellers typically paid a 5-6% commission for home sales, with a portion of that fee going to the buyer’s agent. However, as of July 2024, sellers’ agents can no longer offer part of their commission to buyers’ agents through the MLS. Instead, buyers who want an agent will need to sign a separate agreement to pay their agent directly which can be costly.
Why Buyers May Turn to Attorneys Instead of Realtors
The new rules present a challenge for buyers who might not want to pay for a buyer’s agent out of pocket. As buyers look for alternatives, there are two main options: attempt to go through the real estate transaction process on your own (not recommended) or hire a Florida real estate attorney as a viable and cost-effective solution.
Unlike realtors, attorneys provide a higher level of legal acumen, ensuring that buyers can confidently manage real estate transactions. By hiring an attorney, buyers can avoid paying a commission to a realtor and still receive essential guidance throughout the process.
Streamline Your Florida Real Estate Transactions
At the Law Office of Ray Garcia, we recognize that these new commission rules bring both opportunities and challenges for buyers and sellers in South Florida. With decades of experience in real estate law, we can assist in handling every step of the transaction from negotiation through the title process, ensuring your interests are protected.
If you’re buying or selling property in Florida, contact us today to learn how our legal team can help you achieve a smooth, successful transaction. Call the Law Office of Ray Garcia at (305) 227-4030 to schedule a consultation and get the legal guidance you need in today’s evolving real estate landscape.
Law Office of Ray Garcia, P.A.
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