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Answer: The most basic answer is the the California Association of Realtors removed all forms a listing agent could use to address this issue with buyers agents. Due to recent changes in industry regulations and increasing scrutiny from the Department of Justice (DOJ), we believe agents are no longer authorized to unilaterally broadcast offers of compensation to buyer’s agents without proper legal oversight and documents. The concern is that such practices could lead to steering, where agents might favor certain properties based on the compensation offered rather than the client’s best interest. In California, while it’s still legal to offer compensation, it must be done with the correct legal forms and safeguards in place to ensure compliance with both state and federal laws.

Answer: Yes, it is still legal to offer compensation to buyer’s agents in California. However, the process has become more regulated to ensure transparency and fairness. To legally broadcast these offers of compensation, the correct legal forms and disclosures must be used, and these should be prepared in consultation with or by an attorney. This ensures that all parties are protected and that the transaction complies with current legal standards.

Answer: An attorney can provide the necessary legal oversight to ensure that offers of compensation are made in a way that is compliant with current regulations. They can prepare the required legal forms and disclosures, ensuring that everything is documented correctly to protect both the seller and the agent. Additionally, an attorney can offer guidance on how to navigate the complexities of these transactions, reducing the risk of legal issues and ensuring that the process is transparent and fair for all parties involved.

Answer: Failing to use the proper legal forms when offering compensation can expose agents and their clients to significant risks, including potential legal disputes, fines, or even the invalidation of the transaction. Without the correct documentation, there is a higher risk of accusations of steering or other unethical practices, which could lead to grievances or legal action. Using the proper forms prepared by an attorney helps mitigate these risks and ensures that the transaction is legally sound.

Answer: The Certified Seller Advocate program equips agents with the tools, forms, and legal support needed to navigate the complexities of broadcasting compensation offers in compliance with California law. By partnering with experienced attorneys, the program ensures that all legal aspects of the transaction are handled correctly, reducing the risk of legal issues and enhancing the agent’s ability to serve their clients effectively.