IR Forms (Including RE-T)

NAR’s settlement requires REALTORS® to implement the practice changes on or before August 17, 2024.

Additionally, to comply with NAR’s mandatory national MLS policies, REALTOR® MLSs must also implement the practice changes by August 17.

You have a few options: (1) download the disclosure form provided by Idaho REALTORS and give it to the seller to provide up-to-date language required under the NAR Settlement; or (2) use the updated versions of the RE-16, RE-14, or RE-15 explain the changes and have the seller or buyer sign the new form.

If the listing agreement specifies that offers of compensation be made on an MLS then the listing broker should work with the seller to amend the listing agreement to make it clear the listing broker will not make an offer of compensation on an MLS and to determine whether the seller instructs the listing broker to make an offer of compensation outside of an MLS You may also consider using a RE-16B to communicate any compensation for a selling agent approved by the seller to help buyer’s representatives understand if compensation is available for that property.

Yes, if you have an active representation or compensation agreement signed before August 17th, 2024, you will need to either provide the RE-T to the buyer or seller after the practice changes go into effect, or have the buyer or seller sign an updated version. Using old forms without the RE-T after August 17th could subject the member to potential liability for non-compliance with the NAR settlement.

No, you are not required to have the seller sign an RE-T if the listing is pending before the practice changes take effect on August 17th.

No, you are not required to have the buyer sign an RE-T if the property sale is pending before the practice changes take effect on August 17th.

No, posting the RE-16 B or C in the Documents tab within the MLS is prohibited under the proposed practice changes of the NAR settlement.

If the purchase and sale contract (RE-21) is executed before MLS policy change (eliminating references to compensation), the buyer broker should be able to rely upon the offer of compensation even if closing occurs after the date of the policy change.

But if the RE-21 is not executed before the date the participant’s MLS implements the policy changes (eliminating reference to compensation), the offer on an MLS will not be valid and buyers and buyer brokers may wish to protect themselves in writing with the listing broker or seller through the RE-16C or including the offer of compensation in an amended and updated RE-21.

No. A buyer can always ask their buyer broker to make it a term of an offer to purchase that the seller pay certain compensation to the buyer broker.

Standard of Practice 16-16 prohibits a REALTOR® from attempting to modify the terms of a listing agreement through the terms of an offer because the listing agreement is a contractual matter between the seller and the listing broker. However, the seller and the listing broker may independently choose to amend the listing agreement or take any other action they deem appropriate based on the seller’s negotiations with the buyer. Standard of Practice 16-16 also prohibits a REALTOR® from delaying or withholding delivery of a buyer’s offer while attempting to negotiate a buyer broker compensation.

Forms are provided as tools to help members serve their clients/customers. They are not required or mandated. Each broker needs to decide if a form is right for their business model and consult with their client to ensure it is appropriate for any given transaction. That being said, listing agents could use the RE-16B to provide notice or communicate to selling agents if the seller is offering buyer’s side compensation on a specific property. The RE-16B cannot be posted or uploaded to a MLS; however, the new form can be uploaded or attached to a brokers page with the listing.   

Forms are provided as tools to help members serve their clients/customers. They are not required. Each broker needs to decide if a form is right for their business model and consult with their client to ensure it is appropriate for any given transaction. That being said, selling agents may use the RE-16C to negotiate with a listing agent in situations when the compensation offered by a seller is below what the buyer has agreed to pay the selling agent. Both selling and listing agents may use the RE-16C to initiate negotiations over the amount of compensation for a property. Obviously, the listing agent must work within the preapproved amount of compensation agreed to by the seller in the RE-16 or work with the seller to approve a different amount before the RE-16C can be approved. IR is going to add signature lines for the buyer and seller to the RE-16C in the next iteration sometime before the middle of January.  

The RE-5 is a new form to be used in the narrow situation when a potential buyer wants to see a home, but does not want to sign a representation or compensation agreement with a REALTOR prior to touring the home. The RE-5 may also be used if you are unsure about serving as an agent or working with the potential buyer. The RE-5 helps you comply with the new requirements under the NAR Settlement Agreement, which requires a written agreement with a buyer before touring a home. The RE-5 is not a substitute or alternative to the RE-14 or RE-15 if you are going to identify potential properties for the buyer, arrange for the buyer to tour a property, perform or facilitate negotiations on behalf of the buyer, or present offers by the buyer.

Yes, regardless of whether it is an agency or non-agency relationship, the obligation is triggered once the REALTOR® works with and takes that buyer to tour a home.

No. In this case, since the REALTOR® is only working for the seller, and not the buyer, the REALTOR® does not need to enter into a written agreement with every potential buyer at the open house.

This could change; however, if the buyer asks you to show them a different home or they ask you to represent them in the purchase of the open house you are showing on behalf of the seller. In either scenario a RE-5 or RE-14 would be required before you showed them any properties.

According to NAR’s FAQs, the term “home” is defined as a residential property consisting of not less than one nor more than four residential dwelling units. The definition does not cover commercial properties, vacant land, or multifamily properties with more than four units.

For more detailed information, please refer to the NAR Settlement FAQs (see FAQ #61).

No. An agreement is not required because the REALTOR® is performing work for the seller and not the buyer.

The “working with” language is intended to distinguish REALTORS® who provide brokerage services to a buyer—such as identifying potential properties, arranging for the buyer to tour a property, performing or facilitating negotiations on behalf of the buyer, presenting offers by the buyer, or other services for the buyer —from REALTORS® who simply market their services or just talk to a buyer—like at an open house or by providing an unrepresented buyer access to a house they have listed.

If the REALTOR® is working only as an agent or subagent of the seller, then the participant is not “working with the buyer.” In that scenario, an agreement is not required because the participant is performing work for the seller and not the buyer.

Authorized dual agents, on the other hand, work with the buyer (and the seller).

Written buyer agreements are required before a buyer tours a home.

Touring a home means when the buyer and/or the REALTOR®, or other agent, at the direction of the REALTOR® working with the buyer, enter the house. This includes when the REALTOR® or other agent, at the direction of the REALTOR®, working with the buyer enters the home to provide a live, virtual tour to a buyer not physically present.

A “home” means a residential property consisting of not less than one nor more than four residential dwelling units.

No. NAR policy does not dictate:

• What type of relationship the professional has with the potential buyer (e.g., agency, non-agency, subagency, transactional, customer).
• The term of the agreement (e.g., one day, one month, one house, one zip code).
• The services to be provided (e.g., ministerial acts, a certain number of showings, negotiations, presenting offers).
• The compensation charged (e.g., $0, X flat fee, X percent, X hourly rate).

Compensation continues to be negotiable and should always be negotiated between REALTORS® and the buyers with whom they work.

MLSs will be responsible for enforcing the rule regarding written agreements, like MLSs enforce other existing rules.

No, an MLS is not required to receive a copy but can request it as a matter of their local enforcement.

Yes, MLS Participants may augment MLS data or data feeds with offers of compensation to buyer brokers or other buyer representatives for only listings of their own brokerage.

No, use of MLS data or data feeds to directly or indirectly establish or maintain a platform of offers of compensation from multiple brokers to buyer brokers or other buyer representatives is prohibited.

Yes.