New Real Estate Rules Decouple Broker Fees, FinCEN Finalizes Reporting Requirements

Recent changes in real estate regulations have led to significant shifts in the market. The National Association of Realtors (NAR) has implemented new rules that decouple seller and buyer broker fees, which went into effect in August. This change is a result of a lawsuit against NAR and is expected to lead to lower commissions. Additionally, the Financial Crimes Enforcement Network (FinCEN) has finalized new residential real estate reporting requirements. These regulatory changes have resulted in buyer's agents negotiating higher compensation terms in their contracts, as offers of cooperating commissions from MLS are being removed pre-8/17. The market is experiencing a 'tale of two markets' as agents, buyers, and sellers navigate these new rules.