NAR Reinforces MLS Local Marketplace Ethics Rules
In the real estate field, there is a lot of concern about disclosure and transparency. What are brokers and agents really doing for clients? What is included in the fees and what things are extra?
The real estate industry can be tricky to navigate. There’s a lot of money exchanging hands. A home is a huge investment, so buyers and sellers are naturally wary.
And rightfully so. The real estate industry has seen many ethics violations in recent years, with brokers acting in their best interests to agents hiding property issues from clients. These issues may seem minor because they happen so often but they are serious and can result in license loss and other penalties.
Because of this, the National Association of Realtors (NAR) has been cracking down on these concerns by reinforcing its ethical guidance, particularly as it pertains to the Multiple Listing Service (MLS) marketplaces. The changes are taking place despite the U.S. Justice Department’s antitrust actions.
What Changes Are Taking Place?
On January 1, there will be changes in regards to broker participation and consumer transparency. Those changes include the following:
- Reinforcing the fact that brokerage services should not be represented as free
- Ensuring that buyer agents disclose compensation with their clients
- Ensuring that buyer agents refrain from excluding listings that don’t provide them with adequate compensation
Realtors have always been required to advertise their services truthfully. The new rules hone in on the use of the word “free.” They also clarify the intent of the NAR Code of Ethics as well as its policies around broker marketplaces and commissions.
Currently, NAR rules limit competition from brokers The Justice Department had sued the NAR about this very issue in 2005. They received a settlement in 2008.
Real estate agents must have a license. Those who are designated as Realtors earn that designation from the NAR itself. Realtors are also tied closely to the MLS marketplace, but technology has been disrupting that area. iBuying has been a major force in the real estate industry in recent years, as it allows homeowners to save money by selling their home without a real estate agent or broker.
While real estate professionals may not be too happy with these new guidelines, transparency about listings is a good thing for commercial buyers, sellers, homeowners, and real estate investors. Those who buy property need to know everything about it—the good and the bad.
Keep Your License With Help From a Tampa Real Estate Broker License Lawyer
Real estate professionals work with properties worth hundreds of thousands and even millions of dollars. There’s a lot at stake for buyers and sellers.
If you are dealing with ethics issues against your real estate license, Tampa real estate brokers licensing lawyer David P. Rankin can help. We have helped many licensed professionals handle disciplinary issues. Our prompt and professional service will help you keep your license. Schedule a consultation with my office today. Fill out the online form or call (813) 968-6633.