New California Real Estate Commission Rules: What Buyers & Sellers Need to Know
As of August 17, 2024, California rolled out major changes to how real estate commissions work, aiming for greater transparency and flexibility.
Buyer Agreements Now Required – Buyers must sign a representation agreement before touring homes, clearly outlining services and fees.
No More Commission Listings on MLS – Commissions can’t be advertised on the MLS; buyer agents must negotiate compensation separately.
Buyers May Pay Their Agent’s Fee – Sellers are no longer obligated to cover buyer agent commissions, though they can still offer it privately.
More Negotiation & Paperwork – Expect deeper discussions around agent fees, with more contracts involved for both buyers and sellers.
Budget Impact – Sellers may save on commission costs, while buyers may need to factor in agent fees as part of their closing budget.
These updates aim to make the home buying and selling process more transparent and consumer-driven. Talk to your agent to fully understand how these changes affect you!