Tn Nar Settlement

Agency & Disclosure: The TN NAR Settlement Understanding how the post-NAR settlement rules intersect with Tennessee agency law is increasingly tested because it directly changes *how* and *when* buyer agency relationships must be documented — a core disclosure and representation issue on the Tennessee salesperson exam. --- ## What Is the NAR Settlement and Why Does It Matter? In August 2024, a landmark National Association of REALTORS® (NAR) settlement took effect, fundamentally altering how buyer's agent compensation is handled in real estate transactions. The rule change most relevant to Tennessee license law is this: buyer broker compensation can no longer be advertised or offered through MLS listings. This reshapes the agency disclosure landscape because it forces buyer representation and compensation conversations to happen earlier — and more formally — in the transaction. --- ## Key Concepts ### The Pre-Settlement vs. Post-Settlement Shift | Feature | Before Settlement | After Settlement (Aug 2024+) | |---|---|---| | Buyer compensation in MLS | Seller could offer buyer-agent co-op fee via MLS | Not permitted in MLS | | Buyer representation agreement | Often informal or delayed | Required before showing property | | Compensation conversation | Could be deferred | Must happen at first substantive contact | | Who pays buyer's agent | Traditionally the seller (via listing) | Negotiated separately; buyer may pay directly | ### The Written Buyer Representation Agreement Under both Tennessee agency law and the post-NAR settlement framework, a buyer representation agreement is required before an agent provides representation services to a buyer. Tennessee already required a written agreement for buyer agency — the settlement reinforces and accelerates this requirement by tying it to showing properties. Key features…