Not a flashy tagline, but let’s dive in.

The National Association of Realtors (NAR) commission ruling from Missouri has several key details that we are still trying to grasp.

At the heart of the decision, filed back in 2019, is the matter of commissions and how agents are compensated, and how this information is presented (or not) on MLS listing services.

From a lender’s perspective, it raises the question: How do buyers pay for their agent? Do they have a buyer’s agent agreement in place? Is the buyer’s agent insisting on cash payment or seller commissions?

Here’s the rules:

Under federal regulation 1026.37(g)(4), if the mortgage loan originator is aware of any “other” costs related to the real estate transaction, they should clearly be disclosed on the LE. 

Under federal regulation 1026.38 (j)(2)(v): “General seller credits. When the consumer receives a generalized credit from the seller for closing costs or where the seller (typically a builder) is making an allowance to the consumer for items to purchase separately, the amount of the credit must be disclosed.

If you’re an agent, please talk to us before drafting your contract. If you’re a buyer, please speak with us before signing any contracts. If you’re a seller, firstly, thank you for providing inventory, and secondly, please have your agent speak with a lender.

Finally a calming image to take the stress out of the day…