NAR Lawsuit Settlement - Additional Info

Under the settlement, SC buyers and sellers will continue to have access to professional representation. In fact, SC REALTORS® are well-positioned to adapt to the settlement changes because SC real estate laws and customs are unique from many other states. 

Here are some key highlights:

Buyer-Agency Agreements: 

• The settlement requires buyer-agency agreements. SC is fortunate to be one of only a handful of states that already require buyer-agency agreements. SCR’s Buyer-Broker Agreement clearly explains how an agent will be paid for their services and that the buyer is ultimately responsible for paying their agent. Many states will need to start from scratch in drafting this agreement and implementing this process. SCR Legal Staff and the Forms Committee are reviewing the Buyer Agency Agreement and will make any necessary changes. All changes will be to directly address the settlement and will be rolled out well in advance of the implementation date. SCR will conduct widespread and thorough education on any forms changes through a variety of delivery vehicles.

Brokerage Offers of Compensation: 

• SC law allows a listing brokerage to share their compensation with a buyer’s broker, which oftentimes satisfies the buyer’s contractual obligation to pay their broker/agent. Under the settlement, the listing brokerage may continue to offer to offset the cost of the buyer’s agent so long as they pursue it outside the MLS. This allows cash-strapped buyers to continue to have professional representation.
• SCR’s listing agreement will continue to provide transparency and allow sellers to negotiate with the listing brokerage the price for real estate services. The listing agent will continue to use the listing agreement to notify the seller and have the seller acknowledge that the listing agent MAY share the compensation with a cooperating buyer-broker. SCR Legal Staff and the Forms Committee are reviewing the Listing Agreement and will make any necessary changes. All changes will be to directly address the settlement and will be rolled out well in advance of the implementation date. SCR will conduct widespread and thorough education on any forms changes through a variety of delivery vehicles.