New real estate rules come into effect after $418M settlement

BUFFALO, N.Y. (WIVB) — Looking to buy the perfect home can be stressful, but the process might soon become simpler.

As part of the $418 million settlement, several new real estate commission rules went into effect this weekend. One change is that buyers will have to sign an agreement with their real estate agent before they can get a tour of a house that's up for sale.

"This is going to be brand new for buyers to interview realtors, discover what their value is, how much the fee is going to be at the time of closing before they go shopping," said Vienna Laurendi, 2024 President of the Buffalo and Niagara Association of Realtors. "It's actually going to be a little uncomfortable at first for both buyers and realtors, because we haven't been used to doing that, but I think we're going to get through this pretty quickly."

Laurendi told WIVB News 4 that she's relieved with the changes and believes it will benefit home sellers, buyers and their agents. 

"There's no loose ends, there's no question in the back of their mind of what else will I be responsible for at the time of closing," she said. "Eventually once we get accustomed to this new standard of practice, it's going to be easier for people."

Before Saturday, a seller would be responsible for paying both the listing agent and buyer's agent. A new change allows the seller to decide on how much they want to pay a buyer's broker. Laurendi says it will require more communication between all parties. 

"The buyer now has to understand in writing that the agent that they choose to work with is going to be compensated on the day of closing, how much they're going to be compensated and how they're going to be compensated," Laurendi said. "Whether the buyer's gonna be responsible for paying them or if the seller is going to agree to compensate them at closing."

Laurendi says the changes will help build trust and transparency during what can sometimes be a stressful process. 

"There's no more secrets. There are no more misunderstandings," she said. "There is full disclosure and full communication as to how real estate works mechanically and empowering the consumer and representing the consumer is really what our ultimate job is, protecting them."