“How Did The Bombshell NAR Lawsuit Change Oregon’s Real Estate Market?”

By Will Fendon

For nearly 20 years, Will Fendon has been a top-producing Realtor in Portland, Lake Oswego, West Linn, and surrounding areas.

If you’re considering buying or selling a home in Oregon, the game has changed. New rules have come into play, and ignoring them could lead to costly surprises. Don’t worry; I’m here to help you understand it all and show you how to stay a step ahead.

A recent class-action lawsuit rocked the real estate industry. The National Association of Realtors and some powerhouse brokerages were hit hard, resulting in a multi-billion-dollar case that reshaped how we do business here in Oregon. These changes aren’t just industry buzz; they directly affect how you buy or sell your home.

First, let’s talk about selling your home. You need to know two big things:

• No more BAC in contracts. The contract forms used in Oregon no longer include a section for the Buyer’s Agent Commission (BAC). Before, you’d see the total commission listed—typically 5% to 6%—with a portion set aside for the buyer’s agent. Now, that detail is gone from standard contracts. Confused? You’re not alone, but it’s crucial to understand this change.
• MLS listings got simpler. In the past, MLS (the system that feeds your property details to sites like Redfin and Zillow) would show the buyer’s agent commission. That’s not allowed anymore. No more scanning listings to check what the buyer’s agent is getting paid.

Why does this matter? These shifts don’t mean sellers aren’t paying commissions. It just means the process is handled differently now.

If you’re buying, there are two significant changes you should have on your radar:

• Written commission agreements. For the first time, Oregon requires buyer’s agents to have a signed agreement stating their commission. It’s called a buyer’s representation agreement and usually spells out a commission rate, often around 2.5%. This agreement typically covers up to 12 months, setting expectations immediately.
• Negotiable commissions. When your agent submits an offer, their commission is now a negotiable part. This is a significant shift from the old way of doing things, where the commission was determined upfront. Now, if a seller decides not to cover the buyer’s agent commission or only pays a part of it, guess who might be on the hook? You—the buyer.

Suppose you’re financing your home purchase, budget for this. It’s rare but possible that you’ll need to pay some or all of your agent’s commission.

These changes are more than technical updates—they could impact your bottom line. Imagine closing on your dream home and discovering that part of your agent’s commission wasn’t covered. That’s a hit no one wants to take unexpectedly. By understanding these rules, you ensure that doesn’t happen to you.

Whether you’re buying or selling, being informed is half the battle. I’ve been guiding people through Oregon’s real estate market for almost 20 years, and I’ve never seen changes quite like these. I aim to help you manage these updates smoothly so you can focus on what matters—finding the right home or making the best sale.

The landscape has changed, but that doesn’t mean it has to be complicated. If you’re considering buying or selling a home, contact me at (503) 850-8776 or [email protected]. Let’s talk about how these rule changes affect you.