The Veterans Affairs office has announced changes meant to help veterans remain competitive buyers amid a shifting real estate industry. Generally, a veteran cannot pay for real estate brokerage charges, but a new circular is flexing the rules.
The VA has announced a temporary local variance—effective August 10—that will allow veterans to pay for certain buyer-broker charges. While the variance is temporary, the office notes that the VA will develop a more permanent policy, through a new notice-and-comment rulemaking, as new real estate practices take hold.
Vets can pay reasonable and customary amounts for any buyer-broker charges so long as the home the veteran is purchasing is an area where the listing brokers are prohibited from setting buyer-broker compensation through multiple listing postings; or buyer-broker compensation cannot be established by or flow through the listing broker. Buyer-broker charges also can not be included in the loan amount.
The VA encourages veteran buyers to negotiate the amount to be paid to their buyer-broker, whether the veteran or seller pays the amount. Additionally, the temporary variance announced by the circular does not prevent the seller of the home from paying for the veteran’s buyer-broker charges.
“We applaud the VA for revising this policy and allowing veterans and active-duty service members the same advantages as other buyers in a competitive real estate market,” National Association of Realtors President Kevin Sears said. “NAR launched an all-hands advocacy effort on this issue, including working with Congress and the relevant VA Committees, meeting with the VA, collaborating with industry partners, and holding hundreds of meetings on Capitol Hill during the Realtors Legislative Meetings in May. We look forward to continuing this conversation, and our 1.5 million members stand ready to support the VA in whatever way possible to protect the brave men and women who serve this country and ensure they are given the equal opportunity to achieve the American Dream of homeownership.”
