NAR Settlement
NAR Settlement: What You Need to Know with Florida Realtors
Updated on July 26, 2024
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NAR Settlement: Forms, Resources, Webinars from Florida Realtors

July 23: Florida Realtors has released more new forms in advance of the August 17 NAR Settlement date. Plus, sign up for new webinars about buyer broker agreements

New and updated forms

All forms are available on Form Simplicity

Compensation forms

Florida Realtors has released four new forms — two compensation agreements and modification forms, for each compensation agreement. 

These new forms aim to provide maximum flexibility to compensation arrangements in the transaction and are designed to allow the participants in a real estate transaction to memorialize compensation arrangements.

  • Compensation Agreement - Seller to Buyer's Broker (CASB-1). This new form is a compensation arrangement in which the seller agrees to compensate the buyer's broker for procuring a buyer for a listed property.
  • Compensation Agreement - Seller's Broker to Buyer's Broker (CABB-1). This agreement memorializes any agreement between the brokers. The seller's broker, also known as the listing broker, to compensate the buyer's broker for the listed property. This agreement is property specific, and the arrangement between the brokers should relate to the listed property, not serve as a blanket agreement between the brokerages.
  • Modification to Compensation Agreement - Seller to Buyer's Broker. This form allows the parties to make changes to any material terms of the underlying compensation agreement between the seller and the buyer's broker.
  • Modification to Compensation Agreement - Seller's Broker to Buyer's Broker.

Revised buyer broker forms

The Exclusive Buyer Brokerage Agreements have been revised and simplified to improve their usability and bring them into compliance with the National Association of Realtors settlement agreement.

Showing agreements

Property Pre-Touring Agreement (PPTA-1)

There has been high demand from members for a tool that is concise, but satisfies the elements of the settlement. This demand gave rise to the development of the Property Pre-Touring Agreement.

This form provides a way to provide the necessary disclosures of the settlement to a consumer prior to showing property. The form also provides fundamental information regarding broker compensation.

There is educational value in this form regarding compensation but the form does not contain many of the typical contractual provisions that address the rights and responsibilities of the parties, including how compensation disputes are addressed. The form is likely most effective when used at the start of the relationship between the parties and members may want to consider graduating to a more well defined agreement between the parties as the relationship between the broker and consumer unfolds.

Please take the time to ensure that you select the agreement that best meets the needs of your relationship with the customer. The Form Simplicity library offers many options ranging from the simple to the more well defined.

Modification to Exclusive Buyer Broker Agreement/Showing Agreement (MEBBSA-1)

This newly created form allows the consumer and broker to modify the material terms of the Exclusive Buyer Broker Agreement or the Showing Agreement. It is important that the parties state the date of the agreement that the parties seek to modify. There is no place for the parties to enter a property address because the original agreement may or may not be property specific. If the parties would like to make the modification property

specific, they may do so by adding the property address to the other terms section of the modification form. All necessary disclosures to comply with the NAR settlement have been added to the modification form.

Revised Showing Agreement (SA-4). Click here to see redline, which shows changes required to bring this form in compliance with the terms of the NAR Settlement Agreement.

    Questions? Contact the Florida Realtors Legal Hotline at 407-438-1409.

    Upcoming educational webinars

    Forms update webinars and Q&A with Juana Watkins, Florida Realtors General Counsel

    Brokers: Let’s Talk Buyer Broker Agreements
    When: July 29, 2024
    Time: 2-3:30 pm
    Brokers, please join the Florida Realtors legal team for a discussion on the amended Buyer Broker Agreements to help you do business in a post-NAR settlement world.

    CLICK HERE TO REGISTER

    All members: Let’s Talk Buyer Broker Agreements
    When: July 30, 2024
    Time: 10-11:30 a.m.
    Please join the Florida Realtors legal team for a discussion on the amended Buyer Broker Agreements to help you do business in a post-NAR settlement world.

    CLICK HERE TO REGISTER

    "Buyer Representation: What You Need to Know"

    Your 2024 Florida Realtors Leadership Team has seen the need for continued education on this topic – so in addition to our virtual three-hour CE course "Understanding Buyer Broker Agreements" that we are presenting, we are also hosting 90-minute webinars to help you adapt.

    CLICK HERE TO LEARN MORE AND REGISTER.

    What's next

    Form updates coming soon:

    • Amended Retainer Agreement
    • Release of amended Listing Agreements and several other forms. One of those forms will address what you do with listings and buyer broker agreements that are in effect on August 17 that do not have the required language for settlement compliance.

    Coming in October: Condo riders will change October 1, not July 1.

    About the settlement

    The National Association of Realtors® (NAR) announced a proposed $418 million settlement agreement to the Sitzer-Burnett verdict that would end litigation of claims brought by home sellers related to broker commissions.

    The agreement resolves claims against NAR, more than one million NAR members, state/territorial and local Realtor® associations, all association-owned MLSs and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below. However, agents affiliated with HomeServices of America and its related companies – the last corporate defendant still litigating the case – are not released under the settlement, nor are employees of the remaining corporate defendants named in the cases covered by this settlement. Click here to read the full news article.

    CLICK HERE FOR LATEST NAR UPDATES

    Related links & additional resources:

     

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