Fl Nar Settlement Impact

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) --- ## 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. --- ## 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 --- ## 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…