December 23, 2024

Brighton Journal

Complete News World

New real estate rules come into effect, affecting buyers and sellers

New rules for the residential property market mean that from Saturday, anyone in the market to buy or sell a home will face unfamiliar processes, and possibly a little confusion.

The “practice changes” stem from a 2023 legal decision about the way estate agents are compensated.

Traditionally, when a home is sold, the seller pays a commission of about 5% to 6% that is split between the buyer’s and seller’s agents. The lawsuit alleged that this structure helped keep commissions higher than they would otherwise be. It also meant that the seller had to pay the agent representing the other side of the deal, a practice that many observers considered inappropriate.