I just got news that the person who won the NAR settlement's company is now paying agents per showing, "per action". Basically what's happened is that they got a bunch of publicity from the NAR settlement and buyers and sellers are already calling them. I was thinking they would have an in house team doing the legwork, but they are actually paying agents per showing.

If buyers want to use a service like that and are successful, then all the power to them — good luck to them and wish them the best.

On the agent side of things, I could easily see many agents going that route. It will turn into an Uber or Lyft of real estate.

I say "Important Alert" because I do believe it will disrupt the real estate industry as we know it.

That being said, it's still not enough to worry me.

I just read their user agreement.

It looks like there is an option for them to pay the brokerage (and then the brokerage pays the agent). There is also an option for the agent to get paid directly.

Here's what language scared me a bit:

"Accepting full liability for any errors, omissions, or misconduct that may arise from your professional activities on the —– platform. —– disclaims any liability for real estate services provided by Agents or Brokers using its platform."

Anyway, it's a new day and I figured I'd share this news.

Here is the user agreement for those interested in reading it.  I redacted the company name with ———.

Updated: 2024-08-21

These Agent Terms of Service ("Agent Terms") govern your use of the ——, Inc. ("——") platform as a real estate agent ("Agent"). By registering as an Agent on the ——- platform, you agree to comply with and be bound by these Agent Terms, as well as the——–  Terms of Service and Privacy Policy.

Role and Representation

As an Agent on the ——- platform, you represent and warrant that:

• You hold an active real estate license in good standing in the state, province, or territory where the subject property is located.
• You operate strictly within the scope of your real estate license and adhere to the governing laws and regulations of the jurisdiction in which you are licensed and where the subject property is located.
• You adhere to the Realtor Code of Ethics applicable in your jurisdiction, whether under the National Association of Realtors (NAR) for U.S. agents or the Canadian Real Estate Association (CREA) for Canadian agents.
• You have verified with your broker and brokerage that you are permitted to use the ——— platform to schedule and receive payment for services provided to homebuyers and sellers.
• You and/or your brokerage have obtained any and all insurance required to perform the services you offer through ——— .

Scope of Services

———  allows Agents to offer software-based services to consumers engaged in the homebuying process ("End Users"). These services include:

• Tours: You will secure ingress and egress to the real estate premises identified by the End User and remain at the property for the duration of the tour.
• Offer Prep Sessions: You will be available to meet virtually or in person for the duration of the offer preparation session until the offer is completed, submitted, and all counteroffers are responded to, resulting in either a successful transaction or a rejected offer.
• Packages: You will provide the bundled services as outlined in the specific Package booked by the End User, which may include multiple Tours and/or Offer Prep Sessions.
• AI-Powered Offers: You agree to utilize the  ———   platform to facilitate the creation, review, and submission of AI-Powered Offers in accordance with the End User's instructions. You understand that these AI-generated documents are tools provided by  ———   , and it is your responsibility to ensure that they comply with legal standards and accurately reflect the End User's intentions.

Compliance and Legal Obligations

By using  ———   , you confirm that:

• You will only perform services within the jurisdiction where you are licensed and legally permitted to operate, and you will adhere to all governing laws and regulations specific to that jurisdiction.
• You operate strictly within the scope of your real estate license, ensuring that all activities conducted through the  ———    platform are in compliance with the laws and ethical standards of your licensing jurisdiction.
• You comply with all applicable local, state, provincial, national, or international laws and customs in the jurisdiction where the property is located.
• You are responsible for the accuracy and legality of any documents, including AI-generated offers, that you review or submit on behalf of the End User. You must verify that these documents meet all legal requirements and reflect the End User's intentions.

Payment and Transactions

Payment Processing: Payments for services provided through the  ———   platform will be processed via a payment processor, such as Stripe, and will be transferred to the bank account or debit card you have registered with  ———   . By using the platform, you agree to transact electronically and accept payments in US dollars.

Direct and Brokerage Payments:

• You may choose to receive payments directly or through your brokerage, subject to local laws and brokerage policies.
• If your brokerage requests that payments be made directly to them,  ———   will transfer the amounts due to the brokerage, which will then be responsible for distributing payments to you.

Cancellation Policy

Cancellation Scenarios:

• User-Initiated Cancellations: If the user cancels a Tour or Offer Prep Session:
  • Less Than 2 Hours Before the Scheduled Time: The user will be charged a $10 fee.
  • No-Show Policy: Failure to arrive at the Tour location or join the Offer Prep Session within 15 minutes of its scheduled start time will be considered a no-show, and a $20 no-show fee will be charged to the user.
  • After the Service Session Starts: The user will be charged the full service fee. However, the fee is only earned by the agent upon the full completion of the service. For Tours, this means securing the property and returning it to its initial condition. For Offer Prep Sessions, this means supporting the user through the acceptance or rejection of all offers, including the preparation of any necessary counteroffers.
• Agent-Initiated Cancellations Due to Personal Reasons:
  • If the agent cancels a Tour or Offer Prep Session within 2 hours of the scheduled time, the agent will be charged a $20 fee, which will be paid to the user. No payment will be made to the agent.
  • If the agent cancels more than 2 hours before the scheduled time, no fee will be charged, but no payment will be made to the agent.
• Listing-Related Cancellations:
  • If the agent cancels a Tour or Offer Prep Session because the property is no longer available (e.g., the house has been sold), no payment will be due to or from either party, and the user will receive a full refund. However, it is the agent's responsibility to verify and regularly check the listing status throughout the process. If the listing status should have been known more than 2 hours ahead of the cancellation, the agent may be subject to a cancellation or no-show charge for failure to verify the listing status.

Non-Agency Relationship

You acknowledge and agree that:

• Your engagement through  ———    does not create an agency relationship between you and the End User or their client. The End User’s relationship with you is solely for the services rendered through the  ———    platform, and ———   is not a party to any agreements between you and the End User.
• You are not an agent, sub-agent, or representative of any End User or their client related to the services you provide. The use of the ———    platform, including AI-Powered Offers, does not imply any endorsement or agency by  ———   .
• You explicitly waive any claims that you are the procuring cause of a real estate sale due to services provided via  ———   for three years after performing such services.

Buyer Representation Agreements

As part of the services provided through the  ———   platform, Agents agree to enter into limited and exclusive buyer representation agreements with End Users, such as the "Limited Buyer Representation Agreement" and the "Exclusive Buyer Representation Agreement" provided by  ———   . These agreements specify the services the Agent will offer to the Buyer, including property tours, offer preparation, and other related real estate services.

It is the Agent’s responsibility to ensure that their broker is fully informed and, if necessary, has granted the required approval to execute these buyer representation agreements, in accordance with local law. By using the ——— platform, Agents confirm that they will handle any necessary communications and obtain any permissions from their brokerage firm to provide these representation services as outlined in the agreements.

These agreements are entered into pursuant to the  ———   Terms of Service and Agent Terms of Service but are ultimately contracts between the End Users and the Agents, along with their respective brokerages.  ———   is not a party to these agreements and does not assume any liability arising from the real estate services provided under these agreements.

Failure to obtain this approval or to fulfill the obligations specified in these agreements may result in the termination of the Agent's access to the  ———   platform.

Agent and Broker Responsibilities and Liability

As an Agent or Broker using the  ———   platform, you are fully responsible for the services you provide to End Users, including but not limited to the accuracy, legality, and effectiveness of any real estate documents, advice, or actions. You must ensure that all services comply with the applicable legal and ethical standards of your profession. This includes:

• Ensuring that any AI-Powered Offers or other documents generated through the ———   platform are accurate and legally compliant.
• Fulfilling your fiduciary duties to your clients, including providing accurate and honest advice, acting in the best interest of your clients, and adhering to all applicable laws and regulations.
• Accepting full liability for any errors, omissions, or misconduct that may arise from your professional activities on the  ———   platform.  ———   disclaims any liability for real estate services provided by Agents or Brokers using its platform.
• Ensuring that your brokerage, if applicable, is aware of and agrees to your use of the  ———    platform, including the receipt of payments for services provided through the platform.

Indemnification

As an Agent, you agree to indemnify, defend, and hold harmless  ———   , its affiliates, and its respective officers, directors, employees, and agents from and against any and all claims, liabilities, damages, losses, and expenses, including reasonable attorneys' fees and costs, arising out of or in any way connected with:

• Your provision of real estate services through the  ———   platform, including but not limited to any errors, omissions, or breaches of your professional duties.
• Your failure to comply with any applicable laws, regulations, or ethical standards in connection with your use of the  ———   platform.
• Any claims brought by End Users, clients, or third parties against  ———   that arise from your actions or omissions as a real estate professional.
• Your use of AI-Powered Offers or other documents generated through the  ———   platform.

Prohibited Activities

As an Agent on the  ———   platform, you agree:

• Not to contact, attempt to contact, or meet with the End User's client outside of the  ———   platform for any purpose other than scheduling and providing the services booked through ———   .
• Not to solicit the End User or their client directly or indirectly for at least three years following the provision of services.

Term and Termination

Term: These Agent Terms commence when you register as an Agent on the ———    platform and remain in effect until you or  ———    terminate your account. Certain provisions, such as those related to non-solicitation and the procuring cause waiver, survive termination.

Termination:  ———   reserves the right to terminate your access to the platform at any time, with or without cause or notice.

Governing Law

These Agent Terms are governed by and construed in accordance with the laws of the State of Delaware, USA. All transactions, including those conducted in Canada, are to be transacted in US dollars and governed by Delaware law.

Changes to Agent Terms

———  reserves the right to modify these Agent Terms at any time. Your continued use of the Services after any modification constitutes your acceptance of the new Agent Terms.

Contact Information

For any questions about these Agent Terms, please contact us:

Email: ——— 

Mailing Address:
——— 
——— 
———