In a significant update, the U.S. Department of Veterans Affairs (VA) has issued a temporary fix allowing veterans using VA loans to pay for their real estate agent's commission, also known as the buyer-broker fee. This change follows the recent National Association of Realtors’ (NAR) commission lawsuit settlement.
Effective August 10, 2024, the VA will temporarily lift the restriction that previously prevented veteran buyers from paying brokerage fees. This interim measure is in place as the VA engages in a formal rulemaking process to develop a permanent policy.
The adjustment aims to ensure that veterans remain competitive in the housing market and can now pay reasonable and customary buyer-broker fees without impacting the transaction. This move has been welcomed by various trade groups, including the Mortgage Bankers Association and the National Association of Realtors, who urge the VA to make this change permanent.
The temporary fix includes safeguards to ensure that all buyer-broker fees charged to veterans are customary within local markets. Additionally, veterans can still ask sellers to cover these fees if preferred.
For the full detailed article, visit HousingWire: VA Issues Temporary Fix to Allow Buyer-Paid Broker Fees.
Stay tuned for further updates as the VA works towards a more permanent solution.