NAR Settlement — Florida Impact

Exam: Real Estate Salesperson — Florida Chapter: Ch7 — Florida License Law and Brokerage Effective: August 17, 2024 (national rule; applies in Florida)

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Overview

The NAR settlement, effective August 17, 2024, changed how buyer-agent compensation is structured and disclosed. The rules apply nationally and affect all Florida licensees. The FL state exam tests both national rules that apply in Florida and FL-specific statutory rules.

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Key Rule Changes (Effective August 17, 2024)

1. Written Buyer-Broker Agreements Required Before Touring

• Agents must obtain a written buyer representation agreement before showing any property
• The agreement must specify the agent's compensation
• Florida's Chapter 475 (Real Estate License Law) and Chapter 61J2 (administrative rules) govern brokerage relationships — compensation agreements must be in writing under FL statute

2. MLS Offers of Buyer-Agent Compensation Prohibited

• Listing agents may no longer offer buyer-agent compensation on the MLS
• All MLS systems in Florida have eliminated the buyer-agent compensation field
• Sellers can still agree to pay buyer's agent compensation, but not through MLS listings

3. Off-MLS Compensation Still Permitted

• Sellers can agree to pay buyer's agent as part of the purchase negotiation
• Often addressed in the purchase contract directly
• The prohibition is on MLS advertising of buyer-agent compensation — not on compensation itself

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Florida Statutory Context

• Chapter 475, FL Statutes: Florida's Real Estate License Law; governs brokerage relationships and compensation agreements
• Chapter 61J2, FL Admin Code: FREC's administrative rules; compensation arrangements must be in writing
• FL already required written brokerage agreements; the NAR Settlement formalized the pre-touring timing requirement
• FREC (Florida Real Estate Commission) expects licensees to comply with national settlement rules as part of lawful practice

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Exam Tips

> FL exam tests national rules as well as FL state-specific rules. The NAR Settlement is treated as a national rule affecting FL licensees.

| Statement | True or False? | |---|---| | Written buyer agreements must be signed before touring | TRUE | | MLS offers of buyer-agent compensation are prohibited | TRUE | | Sellers can still agree to pay buyer's agent as part of the transaction | TRUE — off-MLS only | | The NAR Settlement only applies to states that opted in | FALSE — it applies nationally | | FL's Chapter 475 requires compensation agreements in writing | TRUE |

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Tags: #RealEstate #Florida #Ch7 #NARSettlement #BuyerAgreement #MLSCompensation #Chapter475 #FREC #BuyerBroker #August2024