PHOENIX — Homebuyers who want to see a house with a Realtor must now first sign an employment agreement, per the new National Association of Realtors settlement changes.
The new rule is one of multiple made in the settlement, further regulating the process.
Previously, buyers' agent contracts have been used before making offers or closing, the new rule moves the timeline up to even before the house search.
“Employment agreements have been a part of the law since the 1990s so the timing is what’s different,” Deputy Commissioner Arizona Department of Real Estate Mandy Neat said.
The contracts can look different, locking buyers in only a few days or the entire process. It’s up to the buyer and their Realtor to come to their own terms.
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“Interview people, stop looking at houses first and start interviewing licensees and find someone you trust,” Neat said.
The Arizona Department of Real Estate is urging buyers to do their due diligence before signing anything, discuss what the agent will bring to the table, look at the costs, cancellation clauses, and time invested.
“Because once you sign, you are in a binding contract and it’s really important to understand all the terms and everything that licensee is going to do for you,” Neat said.
The new rule does not impact open houses.
As for commissions, those will still be negotiated between buyers, sellers and their agents.
However, the settlement requires commissions to no longer be listed by sellers on the MLS.
