Ny Nar Settlement Impact

NY NAR Settlement Impact: Agency & Contracts ## Why This Matters on the Exam The NAR settlement's practical effect in New York — the mandatory buyer agency agreement requirement effective August 17, 2024 — is a high-priority topic because it directly changed how agents must work with buyers, and exam questions will test whether you know *when* the agreement is required, *what* it must contain, and *how* it differs from the DOS Agency Disclosure Form. --- ## Background: What Changed and Why In 2024, the National Association of REALTORS® (NAR) reached a landmark settlement that reshaped buyer representation practices nationwide. The core change: buyer's agents must have a written compensation agreement in place *before* showing property. New York implemented this requirement, and it took effect on August 17, 2024. This matters because, prior to the settlement, it was common practice for buyers to tour homes with an agent and only formalize representation later — or never. The new rule closes that gap. --- ## Key Concepts ### The Mandatory Buyer Agency Agreement A buyer agency agreement (also called a buyer representation agreement) is a written contract between a buyer and a brokerage that establishes the agency relationship and spells out compensation terms. Under the post-settlement rule in New York: - The agreement must be signed before the agent shows any property to a buyer - It must clearly state the compensation terms — what the buyer's agent will be paid and how - It formalizes the fiduciary duties the agent owes to the buyer under OLD CAR (Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care) > Critical distinction: This is NOT the same as the DOS Agency Disclosure Form. ---…