FOR RELEASE: SUNDAY, AUG. 4, 2024

New Rules for Staten Island Homebuyers, Sellers, Agents Take Effect Aug. 5

STATEN ISLAND, N.Y. – If you are planning to purchase or sell a home on Staten Island, there is good news ahead: The National Association of REALTORS®’s (NAR) recent settlement has led to several changes that benefit both homebuyers and sellers. The new rules, set to take effect on the Island Aug. 5, will become official across the United States Aug. 17.

“The changes being implemented have leveled the playing field between buyers and sellers. Each will negotiate the fees for the services their agent will provide in the transaction. I believe it’s a win-win situation for everyone,” said Sandy Krueger, president and CEO of the Staten Island Multiple Listing Service Inc. (SIMLS). “Our MLS has chosen to move the date up to allow for a smoother transition toward the nationwide launch.”

WHAT THE NAR SETTLEMENT MEANS FOR HOMEBUYERS:

  • You will sign a written agreement with your agent before touring a home.
  • Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much.
  • The buyer agreement must include four components concerning compensation:
  • A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.
  • Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate) — and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”).
  • A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer.
  • A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.
  • Written agreements apply to both in-person and live virtual home tours.
  • You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.
  • The seller may agree to offer compensation to your agent. This practice is permitted but the offer cannot be shared on a Multiple Listing Service (MLS); MLSs, such as SIMLS, are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
  • You can still accept concessions from the seller, such as offers to pay your closing costs.

WHAT THE NAR SETTLEMENT DOESN’T CHANGE FOR HOMEBUYERS:

  • Compensation for your agent remains fully negotiable, and if your agent is a REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear and transparent discussions with you about compensation. When finding an agent to work with, ask questions about compensation and understand what services you are receiving.
  • You have choices. Work with your agent to understand the full range of these choices when buying a home, which will help you make the best possible decision for your needs.

WHAT THE NAR SETTLEMENT MEANS FOR HOME SELLERS:

  • You still have the choice of offering compensation to buyer brokers. You may consider doing this as a way of marketing your home or making your listing more attractive to buyers.
  • Your agent must conspicuously disclose to you and obtain your approval for any payment or offer of payment that a listing broker will make to another broker acting for buyers.
  • This disclosure must be made to you in writing in advance of any payment or agreement to pay another broker acting for buyers, and must specify the amount or rate of such payment.
  • If you choose to approve an offer of compensation, there are changes to how this can happen.
  • You as the seller can still make an offer of compensation, but your agent cannot include it on a Multiple Listing Service (MLS); however, the offer can be made by your agent via off-MLS platforms such as social media, flyers and websites.
  • You as the seller can still offer buyer concessions on an MLS (for example, concessions for buyer closing costs).

WHAT THE NAR  SETTLEMENT DOESN’T CHANGE FOR HOME SELLERS:

  • Compensation for your agent remains fully negotiable, and if your agent is a REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear and transparent discussions with you about compensation. When finding an agent to work with, ask questions about compensation and discuss what you would like to offer buyers.
  • You have choices. Work with your agent to understand the full range of these choices when selling your home, which will help you make the best possible decision for your needs.

About the Staten Island Board of Realtors® (SIBOR)
and Staten Island Multiple Listing Service (SIMLS)

Established in 1915, the Staten Island Board of Realtors® (SIBOR) is the largest professional association in Staten Island, N.Y.

SIBOR exists to enhance the ability and opportunity of its members to conduct their business successfully and ethically, and promote the preservation of the public’s right to own, transfer and use real property.

Comprised of approximately 2,300 members, SIBOR serves real estate agents, brokers and affiliated professionals throughout the borough and surrounding areas.

SIBOR is the provider of the Staten Island Multiple Listing Service Inc. (SIMLS), which works as a clearinghouse through which more than 275 local real estate firms exchange information on properties they have listed for sale or rent. Together, its members participate in approximately 5,000 real estate transactions every year.

SIMLS is the premier source for real estate listings and market information on Staten Island, providing real estate professionals and the community with a comprehensive platform for property listings, market data, and professional development opportunities.

All SIBOR Realtors belong to the New York State Association of REALTORS® (NYSAR) and the National Association of REALTORS® (NAR).

SIBOR and the SIMLS may be reached at 718-928-3220 and viewed online at MLSsiny.com. SIBOR may also be visited on Facebook at Staten Island Board of Realtors, Twitter via @SIBOR, LinkedIn (Staten Island Board of Realtors) and Instagram at SIBOR REALTORS (siborrealtors).

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Media Contact: Barton Horowitz
Relevant Public Relations, LLC
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