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July 1 is closer than you think, and this year, it’s not just another date on the calendar. If you’re a broker or owner, you have just weeks to get your agents up to speed on the new buyer’s-agent commission disclosure rules. The changes are mandatory, and the risks for missing a step are real: fines, lawsuits, and lost business. This guide gives you practical, plain-English answers to help you train your team, protect your brokerage, and even turn compliance into a selling point. Let’s get started.
If you don’t update your buyer-agent commission disclosures by July 1, you risk fines, lawsuits, and losing MLS access. Your agents could also be left behind as the industry shifts.
In October 2023, a Missouri jury found the National Association of Realtors (NAR) and several major brokerages liable for conspiring to keep buyer-agent commissions high. The Sitzer/Burnett verdict sent shockwaves through the industry and exposed brokers to billions in damages. Facing mounting lawsuits, NAR agreed in March 2024 to a $418 million settlement and sweeping rule changes. The settlement, set to take effect July 1, 2024, requires brokers to overhaul how they disclose and negotiate buyer-agent commissions.
Read the NAR press release.
Text description of timeline graphic:
Fines
Regulators can impose fines for non-compliance. In some states, penalties for violating real estate disclosure laws range from $1,000 to $10,000 per violation. Each transaction counts separately.
See example: California BPC § 10176.
Private Civil Claims
Class-action lawsuits are on the rise. If your agents skip required disclosures, buyers or sellers can sue for damages. The Sitzer/Burnett case proved that courts are willing to award large sums for systemic non-compliance. Even a single missed disclosure could trigger a class action if it’s a pattern.
Reputation and MLS Access
MLSs (Multiple Listing Services) are updating their rules to match the NAR settlement. If your brokerage is flagged for non-compliance, you could lose MLS access, cutting off your agents from listings and referrals. Reputation damage can be just as costly as legal penalties. Clients and agents are watching how you handle these changes.
| Disclosure | Plain-English Wording | Timing | Delivery Method |
|---|---|---|---|
| 1. Buyer-Agent Compensation Is Negotiable | "You can negotiate how much I’m paid as your agent." | At first substantive contact | In person, email, or buyer-broker agreement |
| 2. No Offers of Compensation via MLS | "Sellers no longer offer to pay buyer-agent commissions through the MLS." | Before showing homes | Email, buyer-broker agreement |
| 3. Buyer May Be Responsible for Agent’s Fee | "You may need to pay my fee directly if the seller doesn’t offer compensation." | Before making an offer | Buyer-broker agreement, offer summary |
| 4. Written Buyer-Broker Agreement Required | "We must sign a written agreement before I can show you homes." | Before first property tour | Buyer-broker agreement |
| 5. No Steering Based on Compensation | "I will show you all homes that meet your criteria, regardless of commission offered." | At first contact and as needed | Email, buyer-broker agreement |
Buyer-Agent Compensation Is Negotiable
No Offers of Compensation via MLS
Buyer May Be Responsible for Agent’s Fee
Written Buyer-Broker Agreement Required
No Steering Based on Compensation
Text description of flowchart:
First contact (phone, email, or in person):
Initial consultation:
Before first property tour:
Before making an offer:
Here’s how your agents can explain the new rules in plain English:
"Recent changes mean you have more control over how I’m paid as your agent. My commission is negotiable, and we’ll agree on it in writing before we start touring homes. Sometimes, you may need to pay my fee directly if the seller doesn’t cover it. I’ll show you every home that fits your needs, no matter what commission is offered."
Case Study 1: Missed Disclosure on Dual-Agency Open House
One overlooked conversation can trigger a five-figure penalty. In May 2024, a midwestern brokerage hosted an open house where one agent represented both the seller and a walk-in buyer. The agent failed to provide the new written disclosure about buyer-agent compensation before discussing offer terms. The buyer later claimed they were unaware of their payment obligations. The state real estate commission fined the broker $10,000 and flagged the office for additional audits.
Lesson: Even informal showings require full, documented disclosures, especially in dual-agency scenarios.
Case Study 2: Vague Email Wording Deemed "Steering"
Ambiguous language can be as risky as no disclosure at all. A team leader in California emailed a buyer: "Some homes offer more agent incentives than others—let’s focus on those." The buyer later alleged the agent "steered" them toward higher-commission listings. The local board’s ethics panel ruled the email violated both the NAR settlement rules and state law. The agent was suspended for 30 days, and the brokerage paid a $7,500 fine.
Lesson: Avoid any suggestion that agent compensation influences which homes your agents show or recommend.
Documentation Checklist
Use this checklist to make sure your compliance file is complete for every buyer client:
Do teams need to provide disclosures separately from the brokerage?
Yes. Each agent or team member working directly with a buyer must deliver the required disclosures, even if the brokerage has a master policy. Document who gave what, and when.
What about referrals from other agents or relocation companies?
Disclosures must be delivered by the agent who first establishes a relationship with the buyer, even if the client was referred. Don’t assume the referring party handled it.
Are disclosures needed for pre-existing clients who signed agreements before July 1?
If the client’s agreement predates July 1, 2024, and no material terms have changed, you may not need to re-disclose. But if you amend the agreement or discuss compensation again, provide the new disclosures.
How do we handle disclosures for online leads or chat inquiries?
If a lead becomes a client or you discuss compensation, deliver the disclosures immediately—ideally via email or your CRM system, with a read receipt.
What if a buyer refuses to sign the disclosure?
Document your attempt to deliver the disclosure, note the refusal, and consult your state’s real estate commission for next steps. Some states require you to end representation if the buyer won’t acknowledge the disclosure.
Are there special rules for first-time buyers or non-English speakers?
You must ensure all buyers understand the disclosures. Provide translated documents or use an interpreter if needed, and note this in your file.
Does this apply to commercial transactions?
The NAR settlement and most state rules focus on residential sales, but check your local laws. Some states are expanding disclosure requirements to all property types.
Downloadable Assets
Save time and reduce risk with these ready-to-use tools:
Tip: Store all templates in your brokerage’s shared drive and require agents to use the latest versions.
Software Solutions: Pros and Cons
| Solution | Pros | Cons |
|---|---|---|
| Dotloop | Integrated e-signatures, audit trails, NAR forms | Subscription cost, learning curve for new agents |
| Brokermint | Customizable workflows, compliance dashboards | May require setup help, not all MLS integrations |
| Custom MLS Fields | Directly links to listing data, auto-populates | Dependent on MLS updates, limited customization |
| Google Workspace | Free or low cost, easy sharing | Manual tracking, higher risk of missed steps |
Mini-screenshot placeholder: "Dotloop compliance dashboard with disclosure checklist highlighted."
Training Resources
Keep your agents sharp and your brokerage protected with these options:
Quote from a managing broker:
"We made disclosure scripts part of every new agent’s onboarding. It’s cut our compliance headaches in half."
— Lisa Tran, Managing Broker, Houston
Quote from a managing broker:
"Automating disclosures through our transaction software means nothing falls through the cracks, even during busy season."
— David Kim, Principal Broker, Seattle
Mini-screenshot placeholder: "Sample intake script PDF with required disclosure language highlighted."
Case Study: Mid-Size Brokerage Increased Buyer-Rep Sign-Ups by 18%
Transparency isn’t just about avoiding penalties. It can actually grow your business.
"After we rolled out our new disclosure scripts and buyer education sessions, we saw an 18% jump in signed buyer-rep agreements in just two months. Clients told us they felt more confident and informed, and our agents had fewer awkward conversations about commissions."
Highlight this stat in a shaded box with bolded percentage.
A mid-size brokerage in Ohio didn’t just check the compliance boxes. They trained every agent to walk buyers through the new commission rules, using clear scripts and visual aids. They also updated their website with a "How Buyer-Agent Commissions Work" explainer and offered a downloadable net-sheet calculator. The result: more buyers signed exclusive agreements, and agent trust scores in post-closing surveys rose by double digits.
Messaging Tactics: Transparency, Net-Sheet Calculators, Social Proof
Tip: Make compliance part of your value proposition, not just a legal requirement.
"We tell buyers, 'You’ll never be surprised by fees or fine print. Here’s exactly how we’re paid, and here’s how you can negotiate.' That openness wins trust and referrals."
— Managing Broker, Texas
Future-Proofing: Monitor DOJ Appeals and MLS Policy Updates
Don’t let your compliance plan get stale. Assign someone on your team to track legal and policy updates at least monthly.
Sidebar: What to Watch in 2025
The story isn’t over. In 2025, expect more DOJ scrutiny, possible state-level tweaks, and new tech tools for tracking disclosures. Watch for updates to standard forms, and be ready to refresh your training as the rules evolve. Staying nimble now will keep you ahead of the curve and your competition.
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