In a recent settlement change implemented by the National Association of Realtors, homebuyers who wish to view a house with a Realtor are now required to sign an employment agreement. This new rule, among other regulations, aims to streamline the home buying process. While buyers' agent contracts have been utilized in the past before making offers or closing deals, this updated policy brings the timeline forward, requiring the agreement to be signed even before the house search begins.

Speaking about the development, Mandy Neat, Deputy Commissioner of the Arizona Department of Real Estate, highlighted that employment agreements have been a legal requirement since the 1990s. What distinguishes this change is the revised timing. The contracts may vary in terms, providing buyers the flexibility to choose agreements that span a few days or the entire home buying process. Neat emphasized the importance of interviewing potential Realtors and finding someone trustworthy before starting the house hunt.

The Arizona Department of Real Estate strongly advises homebuyers to conduct thorough due diligence before signing any agreements. Key considerations include discussing the Realtor's competence, services offered, costs, cancellation clauses, and expected time commitment. Once a buyer signs the employment agreement, they are bound by its terms, making it crucial to understand all aspects of the contract and the responsibilities the licensee will assume.

It's important to note that this new rule does not impact open houses, allowing prospective buyers to continue attending such events without any additional contractual obligations. Commissions, on the other hand, will still be subject to negotiation between buyers, sellers, and their respective agents. However, as part of the settlement, sellers are no longer required to list commissions on the Multiple Listing Service (MLS).

As this new regulation takes effect, both homebuyers and Realtors are encouraged to familiarize themselves with its implications. By adhering to this requirement and engaging in open discussions, buyers can ensure a transparent and mutually beneficial home buying process.

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