The real estate landscape is shifting with the upcoming NAR settlement changes set to take effect on August 17, 2024. Many real estate agents are wondering about the new rules for open houses and whether visitors will need to sign buyer broker representation agreements upon entering. To address these concerns, we have summarized key points from the California Association of Realtors (C.A.R.) FAQ about open house procedures in the new regulatory environment.
Understanding the New Rules
Can Listing Agents Hold Open Houses?
Yes, listing agents can still hold open houses after the implementation of the NAR settlement. Additionally, agents from the same brokerage can also hold open houses for the listing agent.
Do Visitors Need to Sign Documentation at Open Houses?
The need for visitors to sign documentation depends on the relationship they wish to establish with the agent present. Here are the different scenarios:
1) No Representation Desired:
Visitors who do not wish to enter into a buyer representation agreement can sign the Open House Visitor Non-Agency Disclosure and Sign-In (C.A.R. Form OHNA-SI). This form acknowledges that the agent is representing the seller and not the buyer, and it helps identify if the visitor is already working with another agent.
2) Limited Representation:
If an unrepresented visitor wants to create a temporary working relationship, the agent can use the Limited Property Representation and Broker Compensation Agreement (C.A.R. Form LPRBC). This non-exclusive agreement applies only to the open house property, lasts no longer than 30 days, and does not require exclusivity.
3) Full Representation:
For visitors interested in a broader working relationship, the agent can propose the Buyer Representation and Broker Compensation Agreement (C.A.R. Form BRBC). This form can cover the open house property or multiple properties, can last up to 3 months (with the possibility of extension), and may be exclusive or non-exclusive.
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Handling Visitors Who Refuse to Sign
If a visitor refuses to sign any documents and only wants to view the property, the agent should limit their interaction to providing information from the listing sheet prepared by the listing agent. This precaution ensures that the visitor does not mistakenly assume the agent is acting as their representative.
Practical Tips for Agents
To adapt to these new regulations smoothly, here are some practical tips:
Prepare Visitors:
Inform visitors about the new requirements as they enter the open house. This preparation can make the process smoother and set clear expectations.
Bring Necessary Forms:
A sign-in sheet is great to gather contact information, but in this new era the for mentioned forms will be necessary to have on hand.
Consult Your Broker:
Ensure that your practices align with your brokerage's policies and obtain explicit permission to use the new forms if necessary.
Stay Informed:
Keep up with any updates to the NAR settlement and C.A.R. guidelines to ensure compliance.
Embrace Technology:
Utilize apps to prepare this document quickly and streamline as needed.
Adapting to the NAR settlement changes will require diligence and proactive communication. By understanding and implementing the new open house etiquette, agents can continue to serve their clients effectively while staying compliant with the latest regulations. For further reading, check out our other blogs on Why Hire a Transaction Coordinator and Understanding the NAR Settlement Frequency Asked Questions.