Own your present. Empower your future.

CHICAGO (September 19, 2024) – The National Association of Realtors® today announced a new series of consumer resources designed to help agents who are Realtors® empower home buyers and sellers following recent practice changes. To date, NAR has published six installments in the series and will continue to release new resources in the weeks ahead. “At the heart of what we do as Realtors® – who abide by a strict code of ethics – is protect and promote the interests of our clients,” said Kevin Sears, President of the National Association of Realtors®. “We are committed to making the process of buying or selling a home as transparent and seamless as possible for clients, and this new series of guides provides an exceptionally clear roadmap for the process of working with an agent who is a Realtor®.” The following guides…

Recently, the Financial Crimes Enforcement Network (FinCEN), a Bureau within the U.S. Treasury Department issued a final anti-money laundering rule for the real estate industry. In February 2024, NAR submitted a formal comment in response to FinCEN’s proposed anti-money laundering rule on this issue. The final rule requires certain real estate professionals to report information for non-financed residential real estate transactions, and transfers of real estate to trusts or legal entities. The rule imposes a cascading reporting regime, which requires closing or settlement agents to provide certain transaction information and details. Alternatively, the real professionals can also designate a specific professional to be responsible for reporting. FinCEN explained that it expects reports to be filed primarily by settlement agents, title agents, insurance agents, or attorneys; however real estate agents are not explicitly exempt from reporting under the rule. The rule also…

Q: The Listing Broker is offering compensation to the Buyer Broker, does the Buyer memorialize that compensation offer in their Contract to Purchase, paragraph 2?   A: Memorialization of this type of cooperative compensation offer belongs on MAR Form 311: Cooperating Compensation Agreement (or its equivalent). If the Listing Broker will be paying the Buyer’s Broker less than what is on the underlying fee agreement between the Buyer and the Buyer’s Broker, the Buyer may elect to ask the Seller to pay the difference utilizing paragraph 2 of MAR’s Contract to Purchase. Conversely, if there is no offer of cooperative compensation from the Listing Broker and instead Buyer Broker compensation is offered directly from Seller as a negotiable term, the Buyer can formally request that the Seller pay their Buyer Broker as a term of the offer in paragraph 2…

Residential rental fee collection is governed by M.G.L. c. 186 §15B which is most often cited for the statutory requirements regarding the handling of security deposits. Any misstep regarding the handling of the security deposit will automatically result in penalties, including an award of three times the amount of the deposit plus attorney fees and costs, but mishandling a security deposit is not the only fee collection and retention that can result in serious penalty.   Under the law, the landlord can only request first month’s rent, last month’s rent, a security deposit (each of which cannot exceed the amount of the initial rent charged), and the cost of a new lock to be paid by the tenant. The tenant cannot be asked to pay any other monies or deposits, although a tenant may pay a fee to a licensed broker…

On August 6th, the Governor signed the Affordable Homes Act into law. This law includes a provision that requires the Executive Office of Housing and Livable Communities to create regulations mandating a right to conduct an inspection. The Act itself does not mandate this right. The new inspection regulations are scheduled for completion by December 15th, though that timeline could be extended and the regulations may also have a separate later effective date. MAR will be involved in the regulatory process and will promulgate any recommended practice and forms changes once regulations are finalized. Keep an eye out for more information likely late this year or in early 2025.

Q: The Listing Broker is asking for a copy of my Buyer Agreement with my client, am I required to share it? A: No. Buyer agreements contain private information and business practices, similar to listing agreements. They are not meant to be enforced by other members in the field.  The existence of a buyer agreement does not change the terms of compensation offered in the listing agreement or the purchase contracts between the buyer and seller. If there is a discrepancy between what was agreed to on an underlying fee agreement and what services were provided or compensation paid, that would be resolved by the parties to that contract.  Compensation details for all brokers involved will be documented in the Purchase and Sale Agreement and the settlement statement. Q: How do you determine if a tenant has a child under…

The two-year legislative session came to a close with a flurry of late-night activity. Here are some highlights: Housing Bond Bill (Affordable Homes Act, H.4977) This bill, which is updated every five years, aims to increase housing funding and improve policies. It allows over $5 billion in bonds, nearly three times more than the previous bill in 2020. Key outcomes include: MAR successfully blocked a much-discussed transfer tax proposal. Rent control, tenant’s right of first refusal (TOPA), and broker fee shifting were also successfully blocked. Several MAR-supported items made it into the final bill including: Accessory dwelling units allowed in single-family zones. Increased infill housing by removing the presumption of adjacent lot joinder. Enhanced protections against baseless anti-development abutter appeals. New tax credits for converting commercial buildings to residential. The bill is now with the Governor, who has ten days…

The 2024 Snapshot of Race and Home Buying in America delves into homeownership trends within each racial group and explores obstacles encountered in the pursuit of homeownership. Leveraging NAR’s 2023 Profile of Home Buyers and Sellers data, the report also explores the demographics of home buyers, motivations for purchasing, types of properties acquired and financial profiles – specifically focusing on racial distinctions.

Q: How and when will MAR be updating forms to comply with the practice changes proposed in the National Association of REALTORS® Settlement? 35599

Q: Can a landlord refuse emergency or temporary housing assistance payments? Can a landlord deny those tenants because the housing program requires a vacant unit for inspection, and this costs the landlord money? 35552