Quick Resources:
10.8.24: A Refresher on Subagency
9.11.24: Settlement FAQ's
8.8.24: Practice Changes and Amendments
7.31.24: New Practice Change Resources: Consumer Materials
NAR has published several new consumer-focused resources for NAR members to use as they adapt and help consumers navigate the new real estate landscape. All resources are available on facts.realtor, our center for information on the settlement. There you will find:
- 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.
- 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.
- A template compensation disclosure for active listing or buyer agreements as of Aug. 17. The template disclosure 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.
7.24.24: Upcoming Webinars on the NAR Practice Changes
There will be three NAR webinars, available to members only, on learning.realtor about navigating the upcoming practice changes, scheduled for:
Thursday, August 1, 2024 3:00-4:00 pm EST REGISTER
Monday, August 5, 2024 12:00-1:00 pm EST REGISTER
Thursday, August 15, 2024 4:00-5:00 pm EST REGISTER
7.19.24 - BE PREPARED FOR THE AUGUST 17th PRACTICE CHANGES – NEW MICHIGAN REALTOR® FORMS AVAILABLE NOW
Michigan Realtors® is pleased to provide members with a variety of different real estate forms as a member benefit. As part of this value proposition, the Michigan Realtors® volunteer leadership and its legal staff seek to provide forms that are user-friendly and easily understandable by Realtors® and their clients. As you know, the recent NAR Settlement and forthcoming August 17th practice changes have created a need for specific revisions to several existing forms, along with the creation of new forms that brokerages may wish to utilize. Today we are publishing these forms on the Michigan Realtors® website, while also distributing the forms to local associations and their various form vendors. By way of summary, the following forms have either been revised or newly created:
- Forms B & BB – Exclusive Listing Agreements for both Traditional and Designated Agency Firms
- Forms J & JJ – Exclusive Buyer Brokerage Agreements for both Traditional and Designated Agency Firms
- Form N – One Party Agreement
- Seller Concession Addendum
- Buyer’s Broker Compensation Addendum
- Compensation Agreement Between Brokers
You may notice the absence of a “touring agreement” or “showing form.” That is not an oversight. The Forms Committee and legal staff felt that the customizable Exclusive Buyer Brokerage Agreement, which can provide a scope and duration of agency suited to the buyer client’s needs, remains the best approach to satisfy the settlement’s written agreement requirement. It protects the interests of both brokerage and client. Brokerages may still choose to work with buyers as customers and utilize a form to that effect. However, they will need to create or adopt their own form for that purpose.
While use of Michigan Realtors® form library is completely optional, it is important to note that these forms are not intended to be utilized without brokerage approval. The forthcoming changes are going to demand a significant commitment to education, training, and broker supervision to ensure compliance and understanding. To that end, we know that publishing the forms nearly one month prior to the required practice changes is an important first step. For your ease of use, the new forms are accessible by clicking the button below. As you familiarize yourself with the new forms, be sure to open the forms in Acrobat Reader for the best user experience. Also, stay tuned for a forthcoming Letter of the Law that will discuss the revisions and the utility of the new forms.
Access Forms
6.17.24: Letter of The Law | Buyer Broker’s Perspective on Compensation
6.13.24: Letter of The Law | Offers of Compensation
5.23.24: NAR Settlement Update from President Sandi Smith
Fellow Realtors®,
We know that there continues to be many questions surrounding the forthcoming practice changes, set to be implemented by August 17th. To that end, we are excited to announce a very important virtual event. On June 20th I will sit down in the Michigan Realtors® Studio with our Legal Team to have a candid conversation about the practice changes, the pending settlement in relation to Michigan law, and where things stand with the Department of Justice. In fact, we are formally calling the broadcast The Conversation -- because it encompasses the very discussions that we are all having within our brokerages and will undoubtedly have with our clients. During the broadcast, we will discuss where we are headed in terms of best practices and expectations, and how to navigate these changes to best serve our clients. This is free for all members to attend. All you need to do is click the button below! When you register, please also provide us with questions that you’d like us to address. This is one conversation you don’t want to miss!
Michigan Realtors® staff and its leadership remain engaged to ensure that new information is timely, accurate, and easily understood. Not only have we committed to hosting events like this and sharing materials created by both Michigan Realtors® and NAR on our website, but we have also blanketed the state with presentations both virtual and onsite. If you are not familiar with these updates, I encourage you to click hereto review a compilation of all the resources in an organized fashion.
In closing, while it is extremely important to stay on top of these changes for your clients and your business, it is also important to allow yourself to take a breath during this period of change. This is not a time to panic, tilt at windmills, relitigate the lawsuits, or second guess the settlement. Rather, this is a great opportunity to take charge of the change and seek out innovative opportunities to serve our clients. One of the aspects that I love most about our profession is that we never retreat from a challenge – and our industry is famous for presenting us with unique ones. As Realtors® we are innovators and change-makers, focused on our clients and their best interests. They should always expect the Realtor® standard of excellence. I have no doubt that we will rise to the occasion.
Sincerely,
Sandi Smith
2024 Michigan Realtors® President
The Conversation: Focus On The Future
LIVE STREAM
Thursday, June 20, 2024
1:00-2:00 PM EST
FREE TO ALL MICHIGAN REALTORS® MEMBERS
Register
5.23.24: From The Mailbag | NAR Settlement Update Q&A – Part 2
4.11.24: Letter of The Law | NAR Settlement Considerations
3.21.24: From The Mail Bag | NAR Settlement and Buyer Brokerage
3.18.24: Letter of The Law | NAR Settlement and Buyer Brokerage
3.15.24: An Important Message from Michigan Realtors® President Sandi Smith
Fellow Realtors®,
I know we are all seeing the breaking communications that NAR has reached a preliminary settlement in a series of lawsuits surrounding real estate commissions. If you have not seen the NAR commentary on the proposed settlement, you can access that information here. You can also review this video from Katie Johnson, NAR’s Chief Legal Officer. It is also our understanding that, going forward, NAR will be hosting several town halls and posting updates and a more substantive Q&A for consumers at www.competition.realtor. An additional password-protected resource page will be available to Realtors® at facts.realtor.
Most importantly, I wanted to include in this communication the efforts that Michigan Realtors® is undertaking during this time. We are currently reviewing the proposed settlement document. While the settlement is extremely complex and will take some time and greater detail to fully understand, Michigan Realtors® will be actively communicating with membership and its leadership regarding proposed best practices going forward. It is worth noting that the proposed settlement will not have immediate effect and sets a deadline for the primary changes in mid-July, 2024. We will be reviewing our existing forms library for necessary changes and additions to best position our membership for the future. As has been the case, our legal team will continue to be available to answer questions and offer zoom presentations on the preliminary settlement going forward.
We will also be answering media requests and communicating that real estate advocacy for both buyers and sellers has never been more important. Media outlets and their readers must not lose sight of the fact that buying and selling a home is an extremely complex and competitive process and our members are at the forefront of understanding the real estate marketplace in Michigan and putting the interests of their clients first. Irrespective of the proposed settlement, that will always remain a core value of being a Michigan Realtor®.
In closing, I know this is a lot to take in on a Friday afternoon. Rest assured that Michigan Realtors® will be working diligently to make sure our member professionals are informed and prepared for where this is all headed.
Thank you for all that you do for our industry.
Sandi Smith
2024 Michigan Realtors® President