A proposed settlement of a lawsuit by the National Association of Realtors (NAR) with home sellers clarifying sale details has drawn a lot of attention. The President of the Iowa Association of Realtors, Shaner Magalhaes, says there has always been a required disclosure for the seller, and the settlement would now require one for the buyer.
Another issue in the settlement is the practice of the agents for the seller and buyer sharing the commission on a sale. Magalhaes says that this is done to bring in more potential buyers, and some reports have wrongly said that the practice will go away.
Magalhaes says the settlement will not lead to a cap on the amount of commission for realtors.
Magalhaes says this covers anyone who is licensed to sell a home, not just those are part of the Realtors Association. He says an update to Iowa’s real estate law to clarify these issues has passed the Iowa House and Senate and is waiting for the governor’s signature. Magalhaes says clearing up these issues is a good thing. *
He says it is likely the NAR settlement will be approved and completed by July.
