Navigating Upcoming Real Estate Practice Changes
A Message from CAR President Jason Witt: Resilience in the Face of Change
As we navigate the ever-evolving landscape of real estate, it’s imperative that we, as REALTORS®, remain resilient and adaptable. Our profession is not just about transactions; it’s about building communities, changing lives, and being trusted advocates for our clients. Change is a constant, and how we respond to it defines our success and the legacy we leave behind.
On August 15th, significant changes will be implemented following the National Association of REALTORS® settlement. These changes may seem daunting, but I firmly believe in the strength and capability of our members to adapt and thrive. We are great REALTORS®, equipped with the skills, knowledge, and resources to turn challenges into opportunities.
At the Colorado Association of REALTORS®, we are committed to supporting you through these changes. We have invaluable resources at your disposal, including two contract webinars led by Scott Peterson, CAR’s General Counsel. CAR has also put together a practice change resource page for Colorado REALTORS®, available at https://coloradorealtors.com/mls-practice-changes-resources. We have also listed these resources below.
We hope these resources will provide you with the necessary insights and clarity to assist you as you develop your skills to adapt to these changes. Additionally, NAR’s comprehensive FAQ on facts.realtor is available to address your questions and concerns about the settlement.
Jason Witt
2024 CAR President
Colorado REALTOR® Practice Change Toolbox
2024 Contract Changes and Broker Compensation
A variety of new Commission-approved forms are available early this year. Many of the form changes are related to the mandatory MLS Practice Changes that are mandated by the NAR settlement agreement and the removal of the Offer of Compensation from the MLS.
Contract Changes Part 1 – Webinar Recording
CAR General Counsel Scott Peterson reviews all the form changes related to the settlement and the historic MLS Practice Changes.
CAR Legal Bites – Mind the Gap
In this edition of CAR Legal Bites, CAR General Counsel Scott Peterson has information for MLS participants whose practice changes are being implemented before the August 15th release of the new forms.
Contract Changes Part 2 – Webinar Recording
In Version 2, CAR General Counsel Scott Peterson will be reviewing non-settlement related contract changes that are mandatory beginning August 15, 2024, in Colorado for REALTORS®, and included in the NEW Colorado Real Estate Commission’s Contract to Buy and Sell – Residential.
Commission Approved Contracts and Forms
The Colorado Real Estate Commission has made available UPDATED, approved contracts and forms for use after August 15, 2024, provided in “redlined” and “clean” formats for educational purposes. Forms include exclusive right to buy, exclusive right to sell, contracts to buy and sell real estate, and more.
CBA’s Brokerage Firm Compensation Agreement Form
CAR has worked with the Colorado Bar Association to produce this brokerage firm compensation agreement form available for download on CBA’s website.
Template Compensation Disclosure for Active Listing or Buyer Agreements as of Aug. 17.
This template disclosure from NAR can be used for active agreements as of Aug. 17 that will need to be amended or supplemented with a separate disclosure to conspicuously note that compensation is not set by law and is fully negotiable. For more information on requirements for amending active listing or buyer agreements, please see FAQs #52, #53, #71, and #72.
Written Buyer Agreements
Beginning August 17, 2024, an MLS Participant “working with” a buyer will be required to enter into a written agreement with the buyer prior to touring a home, including both in person and live virtual tours. This NAR resource provides information about what provisions must be included in the written agreement pursuant to the NAR settlement as well as other provisions that, while not required by the settlement, MLS Participants may consider addressing with their clients.
Practice Change and Settlement FAQs
As the real estate industry adapts to coming changes following NAR’s settlement agreement, we want to prepare you for a smooth transition and give you the necessary tools to speak to consumers about the new landscape.
Fact Sheets on What the Practice Changes Mean for Homebuyers and Home Sellers.
These resources-one for sellers and one for buyers outline what buyers and sellers should expect after Aug. 17 and the value agents who are REALTORS® provide to consumers in these transactions.
Buyers and Sellers FAQ
Common consumer questions about NAR’s settlement and how it may impact the real estate transaction.
A Broker’s Guide to Upcoming Practice Changes
These slides provide an overview of the settlement, information on corresponding practice changes and implementation, and guidance on how to help consumers understand what these changes mean for them and their homebuying or selling transactions.
Talking Points for REALTORS®
How to talk to consumers about the practice changes.
Summary of MLS Policy Changes
MLS policies and model MLS governing documents have been reviewed and updated.
NAR Settlement FAQs
Answers about NAR’s settlement, including key terms, who is covered, practice changes, financing, and NAR operations.