Buyers' Broker Compensation Agreements Will Be Required in NYC

We're about to see a change in how business is conducted in the New York City real estate market. As of Jan. 13, 2025, agents will be required to use buyer's broker compensation agreements by REBNY, the Real Estate Board of New York. This tracks with what most of the rest of the country is also implementing (or already doing).

Buyer agreements are the result of "consumer protection" class action lawsuits brought against NAR (the National Association of Realtors) and various major real estate agencies, Compass included. Like seller agreements, they lay out the terms and responsibilities of both parties, and address agent compensation. It's that last part that's generated the most attention.

Traditionally the seller paid the buyer's agents fee, but it's not required. The vast majority of sellers in Manhattan and Brooklyn continue to do so. When they don't, or if it's not the full amount that the agent charges, buyer agreements ensure that buyer agents get paid.

This announcement was literally made yesterday, though we've been expecting it. Like anything new, there's going to be a ramp up period, and lots of questions. If you have any, please let us know.