The MD Realtors, our statewide association has gone to great lengths to publicize the "practice norms" which were put into place in August 2024 by a Court decision and settlement with the National Association of Realtors. It's important for buyers working with an agent to understand how their agent will be paid, so that they can negotiate for the best package of services based upon the buyer's circumstances. Here are a few questions and answers from www.MDRealtor.org that we think can be very helpful for buyers;
Q. What are the potential sources of the buyer’s broker’s compensation?
A. There are three potential sources of compensation due to the buyer’s broker.
First, the seller, through the listing broker may be offering cooperative compensation.
Second, the seller may be offering concessions, which may be used to pay the broker.
Third, the buyer may be responsible for paying some or all of the broker’s commission.
Q. I have heard of "showing agreements" where a buyer and broker enter into a
brokerage agreement for a limited duration, with no compensation involved. Does
Maryland REALTORS® offer a “showing agreement”?
A. Yes, our current Exclusive Buyer/Tenant Residential Brokerage Agreement can be used
as a “showing agreement.” A buyer and broker may agree to have the Exclusive
Buyer/Tenant Residential Brokerage Agreement last for any duration of time less than a year
and agree to any compensation amount. For example, a buyer and broker could agree to
have their Exclusive Buyer/Tenant Residential Brokerage Agreement last for one day and
agree that the broker will not be compensated for showing the home(s).
Q. How do I determine if the listing broker is offering cooperative compensation?
A. The settlement agreement prohibits using the MLS or any platform that takes an IDX data
feed from the MLS to communicate offers of cooperative compensation. The settlement
agreement includes an exception that allows a broker, on the broker’s website that receives
an IDX data feed from the MLS, to advertise cooperative compensation for the broker’s own
listings
If an agent or a buyer has questions or is unsure of the situation their interest in a property might involve, we hope they will reach out to us, and please note that our association operates information on www.Marylandhomeownership.com so please use any of the resources that may help you get the home you wish for.
