New York makes big changes in buyer broker real estate commissions

New York makes big changes in buyer broker real estate commissions

The new rules in New York on buyer broker commission is what I think will happen here in Boston:

The Real Estate Board of New York is implementing new buyer’s agent commission rules as the industry faces backlash nationwide.

The provision will prohibit listing brokers from paying buyer’s agents and will instead require sellers to pay them directly. The rule also requires listing agreements to clearly outline the seller’s offer of compensation to buyer’s agents.

The new rule is one of five revisions coming to the Universal Co-Brokerage Agreement, which governs REBNY and the Residential Listing Service. The amendments will take effect Jan. 1.

(Real Estate Board of New York)  REBNY is implementing the changes to “promote transparency and consumer confidence” and “provide for a more efficient ,” Ninve James, who runs the group’s residential brokerage services and products, said in an emailed statement.

Some agents oppose the change, fearing it gives buyers’ agents too much leverage, but it does have supporters.

“Transparency on fees is ultimately a good thing for the industry,” Leslie J. Garfield agent Ravi Kantha said. He added that the changes aren’t out of line with guidelines he already follows.

Source: The Real Deal