Realtor & Listing Issues
The real estate industry is entering a new era. With the NAR Settlement, updated Colorado Real Estate Commission (CREC) forms, and changing MLS rules, buyers, sellers, and agents must rethink how commissions are structured and disclosed. These shifts affect core documents like listing agreements, exclusive right-to-buy agreements, and transaction-broker disclosures.
At GLO, we help you stay ahead of these changes with strategic legal guidance. Whether you're reviewing a listing agreement, navigating agent compensation, or updating your transaction documents, we provide clarity, compliance, and protection—so you can move forward with confidence in a rapidly evolving market.
The Changing Real Estate Landscape: Post-NAR Settlement
The real estate industry is undergoing a significant transformation following the National Association of REALTORS® (NAR) Settlement Agreement on March 15, 2024. In response, the Colorado Real Estate Commission (CREC) implemented new mandatory forms, and Multiple Listing Services (MLS) adopted revised rules that reshape how commissions are offered and paid. These changes directly impact how agents represent clients and how compensation is structured, placing greater emphasis on compliance, transparency, and strategic planning. For sellers, buyers, and agents alike, successfully navigating this new environment requires not only market awareness but also a solid understanding of the legal framework underpinning each transaction.
Updated CREC Forms and Commission Structures
CREC’s revised mandatory forms, effective August 15, 2024, now require greater precision in disclosing how commissions are handled, especially in direct compensation scenarios. Sellers must now clearly document any offered compensation to buyer’s agents, while buyers must understand whether they are responsible for paying their own agent. These forms include significant updates to the Exclusive Right-to-Sell Listing Contract, the Exclusive Right-to-Buy Listing Contract, and the Transaction-Broker Agreements. Each form now carries updated language reflecting the post-settlement regulatory environment, and misusing or misinterpreting them can expose parties to legal and financial risk. A legal review of these agreements ensures accurate use, compliance with CREC standards, and clarity on each party’s rights and obligations.
Strategic Considerations for Sellers
Sellers must adapt their commission strategies based on current market dynamics. In a strong seller’s market, reduced or eliminated buyer’s agent compensation may not deter interest. In a more competitive or buyer-favorable market, offering competitive commissions may be necessary to draw attention. Sellers should coordinate closely with their listing agents and legal counsel to ensure commission terms are clearly defined in the listing agreement, consistent with MLS rules, and legally enforceable. Enhancing the property’s appeal through staging, upgrades, and professional marketing can further increase visibility and strengthen the impact of any strategic commission offering.
Buyer Responsibilities and Agent Compensation
The shift toward buyer-funded commissions places new responsibilities on buyers and their agents. Buyers must be prepared to either pay their agent directly or negotiate for seller-funded compensation in their offer. These changes make it critical for agents to clearly communicate their value and fee structures at the outset of the relationship, ideally through the Exclusive Right-to-Buy Listing Contract. Buyers, in turn, must understand what they are agreeing to and how these arrangements impact their overall costs. Legal review of buyer representation agreements ensures transparency, sets proper expectations, and helps avoid disputes about compensation later in the process.
How glo can help
With new Colorado Real Estate Commission forms, shifting commission structures, and evolving obligations under the NAR Settlement, today’s real estate contracts carry more legal complexity—and more risk—than ever before. Buyers, sellers, and agents must navigate multiple updated agreements, including listing contracts, buyer agency agreements, and transaction-broker disclosures, all while ensuring compliance with state regulations.
GLO provides critical legal review and strategic insight to help you avoid costly missteps. We review proposed agreements, clarify updated compensation terms, and ensure your documents are compliant, enforceable, and aligned with your goals.
Contact GLO today to review your listing or buyer agreement and navigate Colorado’s changing real estate landscape with clarity and confidence.
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