The all annoying NAR settlement stuff …

Today I did an Open House again (first one for different brokerage after August 17th) …

I sent two clients away, who were „unable“

to sign a pre-touring agreement before I would have let them tour the property … . As soon as the first consumer left, his agent was calling me, telling me that she is well trained and I am doing wrong there … .

Here is what I texted her, after her call (she was very „unfriendly“ to put it in a nice wording…) …

„*Hi ………..,*

I truly apologize for any inconvenience this might have caused your client—I completely understand how confusing it can be, especially since it’s not immediately obvious who is hosting the Open House.

I feel I didn’t explain the situation well earlier, so I’d like to give it another go:

When a client with an active Buyer Broker Agreement (with you) wishes to attend an Open House that I’m conducting for a different brokerage, a few forms are required upfront to ensure compliance with the new NAR settlement rules:

1. *Consumer Notice Form or Pre-Touring Agreement*

Since your client is represented by you and I’m hosting this Open House on behalf of another broker, I need them to sign a Pre-Touring or Consumer Notice Form. This form clarifies that I am not establishing an agency relationship but simply providing access to the property. This is crucial for compliance with the NAR settlement, which mandates transparency and written agreements before any brokerage services, even in an Open House setting.

2. *Compensation Disclosure Agreement (if applicable)*

If there’s any discussion or offer of compensation, it must be disclosed in writing outside of the MLS. The new rules prohibit mentioning compensation in the MLS or related platforms, so any such disclosures need to be made through direct communication or a separate written agreement.

3. *Confirmation of Representation*

While not always required, it’s good practice to confirm in writing that your client acknowledges they are represented by you and that I, as the Open House agent, do not represent the seller or listing broker in this instance. This helps avoid any confusion or disputes about representation and compensation.

These steps are in place to protect everyone involved and to ensure we all stay in compliance with the new rules and local regulations.

I understand this might make Open Houses for different brokerages more challenging, as we’ve seen today. I’ll use this experience to highlight some of the practical challenges of the new rules with our board.

Thanks so much for your understanding, Christine. I hope you can still tour this wonderful property with your client—it’s truly worth seeing!

Have a fantastic weekend,

Peter“

What are your thoughts here?

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