New real estate commission rules coming: Here's what CA buyers, sellers need to know

WALNUT CREEK, Calif. (KGO) -- The experience of buying or selling a home is going to be different than transactions in the past. A recent National Association of Realtors class action settlement agreement has laid out new rules that will now bring the buyer and seller into negotiations over commissions on the sale of a house - negotiating who pays commission and how much is paid.

"Today is the day that on the MLS any indication of compensation commission is eliminated, you can't even look at historical data," Tricia Thomas, the CEO of the Bay East Association of Realtors said.

Realtors say that will make it more complicated for agents who now will have to involve potential buyers and sellers in signing new more complicated paperwork.

"So the buyer and seller are looped into the transaction more so we're able to be more transparent with them about compensation," Barbara Clemons, president of the Bay East Association of Realtors said, "There will be more forms for the buyer and seller to fill out."

That will be apparent when visiting an open house - buyers will be asked to sign forms and if they don't have an agent representing them; they might not be able to get additional information about a property without an agent.

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Buyers will have to negotiate how much they are willing to pay the agent representing them. But sellers could incentivize a sale by offering to pay all or a portion of the buyer's agent's commission.

David Stark with the Bay East Association of Realtors said, "It's the biggest decision of your life and it's probably going to be intimidating regardless of these changes but the fact that there's going to be so much more information available, hopefully that'll take care of some of the anxiety people will be having about real estate transactions."

How these changes will affect commissions or the market is still a big unknown.

"There is no crystal ball. I don't believe this is a factor on its own that's going to significantly influence housing prices," Thomas said.

But it will be a learning curve for everyone looking to buy or sell a home now.