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Q: With the NAR Settlement Agreement going into effect August 17, 2024, is there anything that would prevent me from including a commission range with my buyer client in the buyer agency agreement? For example: “Not to exceed 3% and not less than 2.5%.” 

A: The NAR Settlement Agreement includes among its terms that an agent representing a buyer must enter into a written agreement prior to showing a property. The written agreement must specify and conspicuously disclose the amount or rate of compensation. The buyer’s agent may not receive any compensation exceeding the amount agreed to in the agreement. Finally, the amount of compensation in the agreement must be objectively ascertainable and not open-ended. In this case, including a range of 2.5%-3% to be determined at a later time would not be objectively ascertainable, as it is unclear what the exact rate of compensation will be.   

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