Mortgage Update: April 15

Discussions around the NAR Settlement, and its impact on real estate transactions.

Recently, the National Association of Realtors (NAR) settlement has prompted widespread discussion and some confusion. Key misunderstandings include the belief that buyers' agents can no longer be paid, and that sellers cannot compensate the buyer’s agent. Both are untrue.

Listing agents are prohibited from offering compensation to the buyer's agent via the MLS. However, sellers can still pay the buyer's agent directly, the specifics of these transactions are still under discussion. While sellers are not required to compensate the buyer's agent, it is generally advised for ensuring smooth and equitable transactions. Proper representation on both sides facilitates a smoother progression to the closing table.

Updates on the NAR settlement will continue to clarify mortgage financing and transaction processes. For further questions about the NAR settlement and its effects, please email mortgages@johnadamsmortgage.com.