When the NAR settlement first introduced the requirement that all MLS participants working with a buyer must enter into a written agreement before touring any home, I will admit I was concerned. Like many agents, I worried about how this change would impact my ability to connect with potential buyers during open houses. It raised a lot of questions about how to handle visitors and ensure that everyone’s on the same page.
However, after diving into the new guidelines and seeing how C.A.R .(California Association of Realtors) has responded with clear FAQs and practical tools, I’ve come to realize that this change is ultimately for the best. It’s about creating more transparency and protecting everyone involved, which only enhances the buying experience for my clients.
Below is an overview of the latest F.A.Q.s from C.A.R. regarding conducting Open Houses.
FIND IT FAST
- What is the NAR Settlement
- Changes in Open Hous Practices
- Who can hold an Open House
- How to manage attendee interactions
- Download Open House One Sheet
- Key Takeaways & Best Practices
Overview of the NAR Settlement
For those who may not remember or need a refresher – the National Association of Realtors (NAR) settlement has introduced significant changes to real estate practices, particularly affecting how agents interact with buyers. This settlement mandates a new level of transparency and formality, especially when it comes to showing homes. For luxury real estate agents, adapting to these changes is crucial to maintaining professionalism and compliance. The California Association of Realtors (C.A.R.) has responded by providing guidelines to help agents navigate these new requirements, particularly in the context of open houses.
Changes in Open House Practices Post-NAR Settlement
The New Written Agreement Requirement
One of the key changes resulting from the NAR settlement is the requirement for all Multiple Listing Service (MLS) participants to enter into a written agreement with a buyer before they can tour any property. This shift in protocol is designed to ensure clarity and prevent misunderstandings between agents and buyers. For agents conducting open houses, this means they must be more diligent in how they interact with potential buyers, ensuring all necessary agreements are in place beforehand.
Impact on Open Houses
This new requirement significantly impacts how open houses are conducted. Agents can no longer allow casual or unrecorded interactions with visitors. Instead, they must adhere to stricter protocols to ensure that any interest expressed by visitors is properly documented and that their relationship with the visitor is clearly defined. This change necessitates a more structured approach to managing open house events, emphasizing the importance of compliance with these new rules.
All visitors are requested to sign in and acknowledge non-agency via the CAR® Open House Visitor Non-Agency Disclosure and Sign-In form (OHNA-SI) unless the visitor wishes to enter into a representation agreement with you, such as a Property Showing and Representation Agreement (PSRA.)
One suggestion would be: to place a request at or near the entrance along with the OHNA-SI requesting each visitor to sign in and review the document before viewing the property
Who Can Hold an Open House?
Can the Listing Agent Hold an Open House?
The NAR settlement does not prevent listing agents from holding open houses. They are still fully authorized to conduct these events, as long as they comply with the new guidelines. This allows listing agents to continue showcasing properties and directly interacting with potential buyers, provided they follow the updated practices outlined by C.A.R.
Can Another Agent in the Same Brokerage Hold an Open House?
Agents within the same brokerage as the listing agent are also permitted to hold open houses for the listing agent’s property. This flexibility allows brokerages to distribute the workload and ensure that open houses can be held even if the listing agent is unavailable. It also helps maintain consistent service and communication across the brokerage, which is particularly valuable in the luxury market where client expectations are high.
This means Compass agents may only allow other Compass agents to hold their listings open and may only hold a Compass listing open.
Handling Different Attendee Relationships
Scenario 1 | Visitors with No Existing Agent
When an unrepresented visitor expresses interest in forming a working relationship, the agent should consider using the Limited Property Representation and Broker Compensation Agreement (LPRBC) or the Buyer Representation and Broker Compensation Agreement (BRBC). The LPRBC is ideal for situations where the visitor is interested in a single property with a non-exclusive, short-term arrangement, while the BRBC offers a more comprehensive and potentially exclusive relationship. Selecting the appropriate form based on the visitor’s level of commitment helps ensure that both parties have a clear understanding of their relationship and the terms of their engagement.
Scenario 2 | Visitors Working with Another Agent
For visitors who are already working with another agent, the OHNA-SI form plays a critical role. It allows the open house agent to document the visitor’s existing relationship and ensures that any further communication or follow-up is directed appropriately through the visitor’s agent. This practice not only respects the existing agent-client relationship but also helps prevent any potential disputes over-representation.
Scenario 3 | Visitors Who Refuse to Sign
If a visitor refuses to sign any agreement or form, the agent should limit their interaction to providing only the basic information contained in the listing agent’s prepared materials. This approach minimizes the risk of the visitor mistakenly assuming that the agent is acting as their representative. Agents must refrain from offering additional information or advice to avoid creating an implied agency relationship, which could lead to complications or misunderstandings later.
Key Takeaways and Best Practices
Summary of Essential Steps for Conducting Open Houses
Conducting open houses in the post-NAR settlement environment requires careful attention to detail and adherence to new protocols. Agents must ensure that all visitors are properly signed in, that the appropriate forms are used depending on the visitor’s relationship status, and that they do not inadvertently create an agency relationship with unrepresented visitors. These steps are crucial for maintaining compliance and professionalism.
Tips for Success
To successfully navigate these changes, agents should stay informed about the latest guidelines and best practices. Regular training and education are essential to keep up with any further developments in the industry. By embracing these new requirements and adapting their approach, agents can continue to provide exceptional service while safeguarding their practice against potential legal and ethical issues.
Final Thoughts on Navigating the Post-NAR Settlement Real Estate Landscape
The NAR settlement presents both challenges and opportunities for real estate professionals, such as myself, particularly in the luxury market. By understanding and implementing the new practices, agents can enhance their transparency, build stronger client relationships, and maintain their competitive edge. The resources provided by C.A.R., including the new forms and guidelines, are invaluable tools for ensuring compliance and success in this evolving landscape.
