BREAKING: Real Estate Board of New York Changes Buyer Agent Commission Rules

As many agents and brokers know, a major lawsuit began Monday in Missouri that could permanently affect the commission structure across the US. It could also, I believe, place a huge obstacle in home affordability by putting the burden of the buyer agent commission onto the homebuyer.

The Sitzer/Burnett commission trial is in its fourth day in Kansas City, Missouri. The lawsuit threatens to change the traditional way agents are compensated by buyers. Already two national real estate brokerages, RE/MAX and Anywhere (formerly Realogy, parent to Coldwell Banker, Sotheby’s International, Better Homes & Gardens, and ZIP Realty) have settled their role in this lawsuit by paying out millions of dollars. A few national brokerages have left the powerful National Association of Realtors, the nation’s largest trade group — Anywhere, who settled, and Redfin. That means that agents licensed through and selling with these firms are no longer required to have NAR membership.

This morning came another major reverberation.

Buyer Agent Commission

The Real Estate Board of New York is changing its rules around buyer agent commission amid the multiple legal challenges to the way agents are paid nationwide that are the core of the lawsuit

Starting Jan. 1, 2024, REBNY rules will prevent listing brokers from paying buyer agents and will instead require sellers to pay commissions directly, The Real Deal reported Thursday morning.

“The change is part of a handful of updates being made to the agreement governing REBNY and the Residential Listing Service in New York City, independent of the National Association of Realtors. Some agents told the outlet they feared the change would give too much leverage to buyer agents, while others say the change will provide more transparency and efficiency.”

REBNY is a trade association for New York City agents, about 15,000 strong. It is not the New York State Association of Realtors (NYSAR), the equivalent to our Texas Association of Realtors(TAR). REBNY is not a REALTOR board under the NAR umbrella and is not subject to NAR guidelines.