The biggest change in real estate law in the US concerns commissions paid to real estate agents. A recent settlement means the traditional way commissions are handled could be upended by July 2024.

Here’s the breakdown:

• Sellers no longer have to offer compensation to the buyer’s agent upfront: This could save sellers a significant amount of money, especially on expensive properties.
• Buyers will negotiate commission fees directly with their agent: This means the standard 5-6% commission rate is up for grabs.
• Written agreements are required: Both buyers and agents will need a written contract outlining the services provided and the corresponding fees.

The impact depends on whether you’re buying or selling:

• Buyers: You might get a better deal on commission fees, but you’ll need to be more proactive in finding an agent and negotiating rates.
• Sellers: You could save on commission costs, but you might also have a harder time attracting buyers’ agents to show your property.

It’s still early to say exactly how this will play out, but it’s a big change for the real estate industry. Keep in mind this is a recent settlement and needs court approval before going into effect.