ORLANDO, Fla. – A new rule on how real estate agents get paid will go into effect Saturday, Aug. 17.
The change comes after a lawsuit filed against the National Association of Realtors claimed the association enforced practices that made it more expensive to sell a home.
News 6′s Ezzy Castro spoke to the president of the Orlando Regional Relator Association, Rose Kemp, about the change.
“To me it makes sense that if we see our communities change, we see policy change, we see legislature change. This is no different. The realtor world works the same way,” she said.
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In the past, Kemp explained that sellers have used money from the home sale to pay a commission fee that gets split between their agent and the buyer’s agent.
Typically, that fee is around 5% or 6%, though the National Association of Relators said that number has always been negotiable.
“The difference will be compensation to the agent will not be reflected in the MLS (Multiple Listing Service) and now it’s just a different procedure, kind of like behind the scenes there’s additional steps realtors will take to be able to explain and guide to that home buyer how they will be compensated,” Kemp said.
So, what does this all mean for buyers and sellers?
According to Kemp, for many, nothing will actually change and if anything, it’s more about transparency for everyone involved.
“There is more documentation when it comes to the transaction. I think the goodness in all of this is that it will help buyers a little bit better as to how their representation is being compensated,” Kemp said.
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