Navigating New Practice Changes in Real Estate: Key Takeaways from the REALTORS® Legislative Meetings

New Practice Changes in Real Estate Industry to Focus on Fair Housing and Consumer Protection

Legal experts at the REALTORS® Legislative Meetings in Washington, D.C. have highlighted the upcoming practice changes in the real estate industry, emphasizing the need for deliberate conversations with buyers and sellers. The changes, set to take effect in August, aim to clarify services and value while ensuring compliance with fair housing requirements.

Alexia Smokler, director of fair housing policy and programs at the National Association of REALTORS®, emphasized the importance of consistency in fair housing practices. She warned against potential disparate treatment of buyers, sellers, and agents, which could lead to feelings of unfairness or discrimination.

Specific challenges were also discussed, such as the limitations faced by military veterans in paying for buyer representation services under current VA loan regulations. NAR continues to advocate for professional representation for veterans and is working with the VA and Congress to address this issue.

Ken Fears, NAR’s senior policy representative for banks, lending, and housing finance, delved into interested party contributions (IPCs) and highlighted NAR’s efforts to maintain clarity in funding for home purchases. The focus is on advocating for policies that benefit potential home buyers and expand homeownership opportunities for all Americans.

NAR Chief Legal Officer Katie Johnson and General Counsel Lesley Muchow discussed upcoming milestones in the settlement approval process, including a hearing on final approval scheduled for November. The settlement, which received preliminary approval in April, aims to release liability for NAR members and preserve consumer choices in real estate services and compensation.

The settlement also includes practice changes that will go into effect in August, with REALTOR®-owned MLSs required to implement them by that date. NAR strongly recommends all MLSs opting into the settlement to comply by August 17, although they have until September 16 to do so.

The new requirements include written buyer agreements triggered by specific terms such as “working with,” “tour,” and “home.” Offers of compensation must be made off the MLS, and negotiations can be conducted directly with clients. The ethical duties of REALTORS® remain unchanged, with a focus on protecting clients’ interests and honesty in transactions.

NAR is offering the Accredited Buyer’s Representative designation course at no cost to members, emphasizing the importance of upholding ethical standards and providing expert service to consumers. The practice changes may be new for many, but they align with the values of NAR members in promoting fair housing and consumer protection in the real estate industry.