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As the real estate industry grappled with the fallout of the Sitzer/Burnett jury verdict and eventual settlement from the National Association of Realtors® (NAR), a top concern was how changes to the agent commission structure would impact veteran homebuyers.
With NAR’s settlement requiring agents to have a signed buyer agency agreement with every buyer that spells out how much the agent will be paid in a transaction, many believed that buyers using a loan from the U.S. Department of Veterans Affairs (VA) would be disadvantaged.
Due to this, many in the real estate industry feared that veterans would forego representation if there was no guarantee the seller would cover their buyer agency fees.
But much to the industry’s relief, the VA announced in May that it would be issuing temporary guidance. Under the temporary fix, homebuyers using VA loans are able to pay for their agent’s commission.
The temporary guidance went into effect on Aug. 10, a week prior to the settlement-mandated business practice changes going into effect nationwide. The VA has indicated the policy is indefinite, saying it will stay in effect until rescinded.