Arizona Department of Real Estate
New Dream Home Listing? Sign Up Here for an Exclusive Tour!
The home-buying process in Arizona has undergone a significant change. As of yesterday, buyers must now sign a contract with a real estate agent before touring a home. This new requirement was introduced by the National Association of Realtors (NAR).
The contract lays out the services provided for live or virtual tours, agent compensation, and the duration of the agreement. While some parts of the contract are negotiable, such as agent fees, the new rules do not impact open house tours or basic realtor inquiries.
This change stems from a March 15 settlement between NAR and the U.S. Department of Justice, aimed at resolving disputes over broker commissions. Although Arizona realtors have already implemented this rule, it will not be mandatory nationwide until August 17.
Jim Knupp, Deputy Commissioner of the Arizona Department of Real Estate, warned that consumers might find the new requirement surprising. “They shouldn’t be scared but they need to know what the contract says,” he told KOLD. “These contracts are binding. These are contracts with private individuals, and they can be held to the terms of the contract.”
Local realtor and Maricopa Chamber of Commerce Executive Director Kelly Anderson believes the impact on the market will be varied. “In the very, very short term, this is going to have an impact on the market,” Anderson said. “In the one to three-year short term, I don’t think this is going to have an impact on the market.”
Anderson attributed this to a gradual adaptation process. “I think people are going to become accustomed and educated,” Anderson explained. “And I think real estate agents are going to become smarter about how they speak with their clients and possibly more transparent, which is the whole intention.”
In conclusion, Anderson emphasized the importance of education for both real estate professionals and consumers. “The most important thing is to go get educated, whether you are a real estate professional or a consumer,” Anderson stated.
