Background: The NAR Settlement
In late 2023, the National Association of Realtors reached a settlement in an antitrust lawsuit. The lawsuit addressed concerns about NAR's policies on commission structures and the compensation of buyer's agents. As part of the settlement, NAR agreed to implement changes aimed at increasing transparency and fostering a more competitive marketplace. These changes are expected to influence state and local real estate practices, including those in Georgia.
Key Changes to the 2024 GAR Contracts
Commission Disclosure Requirements:
One of the most significant changes in the 2024 GAR contracts is the enhanced requirement for commission disclosures. Agents are now required to disclose the exact commission amounts and who is responsible for paying them. This change aligns with the NAR settlement’s emphasis on transparency in commission practices.
A new Pre-Showing Agreement Compensation Agreement (GAR Form 258) has been added to allow Sellers and Buyers to coordinate compensation communications and confirm what, if any, contributions the Seller or Listing Broker are willing to contribute towards the Buyer Broker compensation.
Buyer Brokerage Agreements:
The 2024 GAR contracts include updated language in the Buyer Brokerage Agreements. These updates clarify the specific compensation to be paid to the Buyer’s Broker and who is responsible for paying that compensation. Also, agents will be responsible for obtaining a written Buyer Broker agreement prior to showing a buyer properties.
Impact of the Changes
The 2024 GAR contract changes aim to increase transparency, reduce disputes, and create a smoother transaction process. By aligning state-level contract practices with the objectives of the NAR settlement, these updates help ensure that real estate professionals in Georgia are prepared to navigate the evolving landscape.
For realtors, understanding these changes is important. Being knowledgeable about the new contract terms will enable professionals to better serve their clients, ensuring compliance with updated regulations and providing clear information.
Join Our GAR Contract Changes CE Class
To help realtors stay informed and compliant, we are offering a Continuing Education (CE) class focused on the 2024 GAR contract changes. This class will provide an in-depth overview of the new contract terms, practical advice on implementing these changes in your practice, and insights into the implications of the NAR settlement.
Whether you're a seasoned realtor or new to the industry, this class is an essential resource for staying ahead in the dynamic real estate market. Join us to ensure you’re fully prepared for the changes and ready to provide exceptional service to your clients.
C&J is Here for You
The 2024 updates to the GAR contracts, influenced by the NAR settlement, reflect a shift towards greater transparency and efficiency in real estate transactions. By understanding and adapting to these changes, real estate professionals can continue to deliver informed and effective service. Don’t miss our CE class to gain a comprehensive understanding of these updates and stay current in the industry. As always, please reach out if you have any questions or concerns, your C&J team is here for you.
