Tx Broker Nar Settlement Compliance

Broker-Level NAR Settlement Compliance Exam: Real Estate Broker — Texas Chapter: Chapter 2 — Texas Agency Law Effective: August 17, 2024 (national rule; applies in Texas) --- ## Overview The NAR Settlement obligations extend beyond individual agents — brokers are responsible for firm-wide compliance. A broker who fails to implement firm-wide policies for buyer agreements and MLS compensation compliance faces both TREC disciplinary exposure and NAR/MLS sanctions. --- ## Broker Firm-Wide Obligations ### 1. Written Buyer Representation Agreements — Firm Policy Required - Brokers must establish a written firm-wide policy requiring all agents to obtain buyer representation agreements before showing any property - This is not optional or agent-by-agent — it must be a firm policy with documented procedures - The agreement must specify the agent's compensation amount or formula - Brokers should maintain records showing agents are complying ### 2. MLS Compliance — No Offers of Buyer-Agent Compensation - Brokers must ensure no agents submit listings with MLS offers of buyer-agent compensation - All MLS listings by the firm must conform to post-August 17, 2024 rules - Brokers should audit listings to confirm compliance - Firm policies should address how compensation will be discussed with sellers and negotiated in contracts ### 3. Compensation Transparency Requirement - Sellers can still agree to pay the buyer's agent — negotiated off-MLS - Compensation is typically addressed in the purchase contract or a separate addendum - Buyers' agents must disclose their compensation to buyer clients - Agents must not accept compensation that exceeds what was disclosed in the buyer representation agreement --- ## Broker Liability for Agent Non-Compliance TREC expects brokers to supervise agents' compliance with both: 1. The NAR Settlement rules…