You're tuning in to a special episode of drive with NAR. Mic take over here in Boston, Massachusetts. I'm James Dwiggins, the co-host of Real Estate Insider's Unfiltered podcast, with my colleague, Mr. Keith Robinson. We had Deanne on from the legal affairs department at NAR, and we talked about the to do's and the to don’ts. New guidelines that came out. Real quick give them a breakdown. Yeah. New guidelines came out. Told you what you should do, told you what you shouldn't do.
And she's probably the most fun attorney I've ever talked to. That is a fact. Put it in your years, kids. Deanne, welcome to the show. We are very, very, very grateful that you've stopped by for 15 minutes. I know the membership will love hearing from you. First of all, just wanted to say kudos for some of the material you guys have been putting out. Yeah. Let's start with that. I know there's lots of guidelines you've been putting out for consumers. for it, for the membership. Where do they go?
What are some of those those guidelines and documents I'm putting out. And then we'll dive deep into the the to do's and don'ts, which is what we want to cover today. Right. So. Well, thank you so much for having NAR Legal Affairs on your podcast. Yes. Yeah. And as you mentioned, you know, we have so many resources really to empower our members, but also to help them when they communicate with consumers. Right. Yeah. Everything's available at facts.realtor.
Anyone who hasn't been on that website. And here's the thing. It's being updated all the time. It is like fresh content always coming out with some new things. But we've got this great consumer guide series, everything from open houses to veterans to, you know, ten questions to ask your listing agent, questions to ask your buyer's agent. Something new is coming out every week on those.
and then early on, you know, after the settlement was announced, we shifted our window to the law video series to do window to the last settlement facts, you know, diving into some of those frequently asked questions. And we've done 19 videos so far. We've gotten over 800,000 views on social media. That is awesome. So we're really happy with how that has reached the membership, as well as the public. Well, and just a quick comment. You know, I think it's super. Well, go ahead, Joe.
Before we move on, just give us that website again one more time because people might have missed it. So just give it to a slow facts.realtor facts.realtor. And by the way, for everybody to know you should be going there often because all of these new guidelines and things and documents and updates. I distribute to our membership. So I think everybody needs to be paying attention to that. So, you know what you guys are coming out with.
It's it's really where you should go when you have a first question. Right? Like if I'm like, hey, what about blah blah? Exactly. That's where you would go first, right? You know what? What else is where a broker can go when they need content for a meeting? Oh, great. Great content. Right. Great content. Also on their social media. Push out those consumer guides Yeah. Like be the source of the information. Great. All of your followers on social media. All right.
So I want to take this down because I know you've just published a new documentation. I love it. Want to be very clear. Everybody knows I've had lots of opinions about this stuff. Who follow our podcast. Have you? And I want to make sure credit is is deserved where it's due here. You guys have come out with some new to do's and don'ts. on the buy side and on the sell side. I've gone through them. We've distributed them. They're great. Talk to us about some of these things.
Let's start with buy side. and I guess the the to do's. I'll take the positive of it. Keith can take the other. So for once. Well, really, the number one thing on that to do list with your buyer is to articulate your value right. Know your value, communicate your value, and do that often right throughout the process. Because as you know, homebuying is not, you know, may not be a very quick process, especially in today's market. Right.
So it is so important to keep articulating your value throughout the process. Buyer, client. the next thing is to explain that written buyer agreement. So by now a lot of consumers already know this. I was walking into a bakery a couple of weeks ago, and there was a group of relatively young people sitting outside talking about how you have to sign a buyer agreement now before you tour a home. Right. So it is getting out there to the public. The public knows about it.
so it is important as an agent to explain what that written buyer agreement is, what it does, and why the buyer is being asked to sign it. And it is pervasive. You know, most MLS is around the country. They have this rule so that the consumers know about it. Yeah. But they still need to hear it. Yeah. Right. It's also a good opportunity to learn. It's a good opportunity to explain what you do and what you charge and all of those things.
So this is a great I see it as an opportunity for us to level up as well. Exactly. And that's a great segue into the third do. And that is to be transparent about the compensation and some of the potential costs throughout the homebuying journey. and really, what you are doing as that real estate professional, guiding them through the process. Right? Not anything to be afraid of, right? You're just you're having the conversation.
And I think that has been kind of this great through line to through all of these practice changes is it's about inviting conversation. Right. Right. You know, it's opening that door, no pun intended. I see what you did there. I see what you did there. And then to having more conversations and more in-depth conversations with your clients on both sides, whether you're representing the seller or the buyer. Yeah. and then that leads into letting the buyer know about all their options, right.
and this is so important as a lawyer, I cannot say this enough, but that final to do is to know and follow your state law. Right. As different states, you know, may have some nuances, some different things. So it's so important to know and follow your state law. Okay. All right. Now let's, let's get naughty. Can we let's talk about the ten don'ts. What are the don'ts?
Well, and I think the first to don't is something that as realtors following the realtors code of ethics, and that is to not misrepresent anything. All right. To be honest and truthful on your communications and not misrepresent anything, including around that written buyer agreements. Okay. And then one of the things I love about our members and about real estate professionals is how creative if you are your innovators, your entrepreneurs.
But in this case, don't stop looking for the work place, right? Follow their rules. Yeah, do the work. Or at least channel your energy into implementing and and how can you evolve your business? Take a bite of the practice changes. Right? Right. and then really, it's about not, steering your clients away from, listings that may not offer compensation and really choosing those properties that meet your buyer's objective criteria.
Right. Right. And not just taking things off a list because they don't. Can I can I boil that down to just show every home for sale? Like it's just. Yes. Show every home for sale. So every and and and it's and then whatever you want to do make it part of the process. But it just every home for sale whatever the buyer wants show them those properties and then work out the rest of that as you go. Don't gotta yeah. Don't think about what like to don't think about what's best for you.
And to do think about what is paramount for your closet. Great way to say it. Yeah. And then the last thing on that to don't list is don't share your agreement with your competitors. Right. That signed written by agreement. That's confidential. That is, you know, business work product. Now your MLS may it need to audit your files. This is like any other MLS rule that they enforce. But you don't need to share your agreement with your competitors. Okay. Okay. I have one question.
Before we move to the sell side, the buyer rep agreement, they're signing it. They're they're agreeing to those terms. Is that is I'm trying to figure out phrases that that's the terms. You don't modify those. That's what it is. Can you give us any kind of clarity on that from here's what I met with them. This will be agreed upon and that's that. Right. And that is one of the two don'ts is, you know, don't accept compensation. That's more than what you have in your agreement, right?
It's really important just to clarify, but it is okay to accept less than what's in your agreement, correct? Yes. It is okay to accept less. Yeah. Okay. Let's go to sell side. So tell us about the the that's dues and then we'll go to that as he said that's adults. Yeah. So trademark trademark I don't I trademarked it. So the first to do on the seller side is actually the same as on the buyer side. And that's about value. Yeah. Right.
Getting your value as a professional, what you're bringing to the transaction, how you can help them. You know through this in this case the home selling during it. Right, right. and then it's it's about explaining what offers of compensation are. Right. and why a buyer may ask a seller to pay something for their closing costs. Yeah, exactly, exactly. And just really again, being transparent, having that conversation of this is what you can expect, these are what your options are.
and, you know, how do you want to how do you want to approach this? Yeah. And like, wait, I feel like sometimes, you know, there's there's articles and news and all that. And so maybe there's this sense of like, yeah, well, I'm not going to blah, blah blah, right. Well, just slow down like relax. Right. Like just we're going to, we're going to evaluate everything in this process. And we're going to look at everything to help you make the best decision for you.
Mister. Mister seller fixer. It's a seller. Yeah, yeah. Okay. yeah. And so it is ensuring that the seller understands are options, right? Yeah. It's how we encapsulate. Yeah. Okay. Okay. That's a great way to say. And then, the next thing is to get a written approval authorization from your seller if they are going to allow you to make an offer of compensation to the buyer's broker, that does need to be in writing. Okay. That is part of this settlement agreement, one of those practice changes.
Okay. and then also to, inform the seller that, the, the buyer's agent, the buyer may seek compensation, right. you know, from them setting that seller up for expectations that could potentially be coming across. Yeah. Okay. Exactly. Yeah. and then, you know, this is something that we have seen through many markets over many decades and that is to present all offers, right? You still get to present all the offers and treat buyers fairly.
if you if you aren't watching this on video, I'm rubbing my forehead to stop the forming migraine from fully, like, I can't believe we have to say that out loud in a microphone, but I guess we still do, right? Yeah, yeah. Got to present all offers. Yeah, yeah. and then, you know, the same thing here too. That was on the, on the, on the buyer side. know that state law, you know, your state, your local. You're right. Exactly, exactly. Now it's time for to doubt the, the naughty list. All right.
Here's what the not to to don't do don't use the MLS to make offers of compensation. Right. Yeah. That was somewhat clear I think. Yeah. But you know that also includes again not being creative in using code words. Right. To get around. Yeah. So you know just we won't use any examples. No just we want everybody stop that noise. And yeah not kids knock it off. Act right.
Yeah. Yeah. and then as we saw on the buyer side, don't show your listing ridgeline listing agreement with your competitors, right? Yeah. and don't, communicate without authorization from your seller. He didn't know your fiduciary is. Yeah. Yeah, exactly. Exactly. and then, you know, the last thing is. And this is something that we've been saying, this is why we put it on the to do list. Yeah. Is, as a listing agent, don't be asking for the written agreement from the other side. Right.
Again, that is a private contract between the buyer and that broker. and, you know, no reason to share it. No reason to ask for it, right? Yeah. So you guys have put this new guidance out, which has been great. As I'm going to reiterate again, I only got a few minutes here, but everyone needs to read it. Like, let's just plan and there's more to it than what you just shared. There's actually a lot more. We're just we giving you a high level. Yeah. So go download it.
These are available as PDF downloads. Read it download it at facts dot realtor going to say that again facts dot real door. And if you're a broker again what a great thing to. Yeah training content for your offices. Well I'm going to go further.
I think that it's important that all the local and state associations grab this document, which I'm sure they have it, but just making sure that they're getting that out, sharing that with their membership, MLS is should share that with their membership too. it really for for me, speaking just on behalf of, you know, my firm, it really helps get some clarity on stuff.
Yeah. And I think it will help everyone understand like these are the lanes, stay within these lanes and, you know, you're going to be you're going to be much better off, you know, to the point you said, stop trying to do things that are not within the terms of the settlement, like just focus on what it is and this and look, just this isn't that complicated. Like I'm going to I'm going to simplify this for everybody. It's not that complicated. If you just follow what's here.
There are lots of companies, agents that are doing just fine. I see lots of opportunity. Yeah. in this stuff. And if you just follow the rules, you're going to be that the what I've learned from a lot of the podcasts that we've done over the past two days is that buyers want representation, sellers want representation. It's an infrequent transaction. They're looking for guidance.
articulate your value to charge whatever service or fee that it is, which is obviously negotiable, all of those things. But just focus on servicing your client, and they're going to be just fine. And so will you. I'm gonna add one piece and push back on you a little because that's what make podcast good. And then we'll wrap this up. Yes, I will, but like it's only it is complicated but it's only complicated once. It's only complicated the first time you're experiencing these new things, right.
That change is hard. None of us like it. But it's complicated the first time. But if you can take the time to read it prepared before you need it, then as you're entering these agreements for the first time in this new way, it'll be complicated. Fine. No problem. But you'll assimilate it very quickly, and then it'll just be how we're doing business going forward. Thank you so much for the knowledge.
No, thank you for letting us have this opportunity to get even more, you know, out there with our members, with these fabulous new resources that we have for them. You're officially the most fun attorney I've ever talked to. Yeah. Appreciate that. Thank you so much. Thanks again.