Louisiana guide

Louisiana MLS Commission Advertising Rules After NAR Settlement

In Louisiana, the MLS no longer shows what a seller is offering to pay your buyer's agent, so you and your agent agree on their fee up front in a written buyer representation agreement.

Reading as buyer.

TL;DR

In Louisiana, the no longer shows what a seller is offering to pay your buyer's agent, so you and your agent agree on their fee up front in a written buyer representation agreement. If you cannot pay the fee out of pocket, your agent can ask the seller to cover it as a concession written into the Louisiana Residential Agreement to Buy or Sell. Any concession has to fit inside what your lender and the appraisal will allow, so it is a real negotiation item in your deal, not a hidden number.

Before you start — 8 things to know

  • Since the settlement took effect on August 17, 2024, Louisiana systems can no longer display offers of cooperative compensation from a listing broker to a buyer's broker.

  • You and your buyer's agent must sign a written representation agreement that spells out their fee before they tour homes with you or write an offer in Louisiana.

  • If you cannot pay your agent's fee out of pocket, you can ask the seller to cover part or all of it as a concession written into the Louisiana Residential Agreement to Buy or Sell.

  • Seller concessions for your buyer-agent fee must fit inside your lender's seller-contribution cap and the home's appraised value, or the deal can fall apart.

  • A Louisiana agent cannot tell you a commission rate is standard or required, because each brokerage sets its own fee independently under settlement rules.

  • Your buyer's agent may learn about a seller's willingness to pay through direct contact with the listing agent or off- marketing materials, not from an field.

  • In Louisiana, buyer-agent fees are fully negotiable, so you can ask for a flat fee, an hourly rate, or a percentage of the purchase price before you sign anything.

  • Louisiana's agency disclosure rules under still apply, so your agent must explain in writing how they get paid and who else may be paying them.

The timeline — step by step

  1. Before touring homes in Louisiana, meet with the buyer's agent and review their fee, services, and the written representation agreement so you know what you are committing to.

  2. Sign the buyer representation agreement with the agent's fee clearly listed, and note whether part of it may be funded through a seller concession.

  3. When you find a home you like, ask your agent to contact the listing agent off- to learn whether the seller will cover any buyer-agent fee through a concession.

  4. Write your offer on the Louisiana Residential Agreement to Buy or Sell with any requested seller concession for buyer-agent compensation spelled out as a dollar amount or percentage.

  5. Negotiate the price and any concession together with the seller, since the final concession amount is part of the contract your lender will review.

  6. After the appraisal, confirm with your lender that the agreed concession still fits inside their cap and the appraised value before you go to closing.

  7. At closing, review the settlement statement to confirm the seller concession and your buyer-agent fee match exactly what your representation agreement and contract said.

Common questions

Why can't I see what the seller is paying my buyer's agent on the Louisiana [[MLS]]?
Since the settlement took effect on August 17, 2024, Louisiana systems are no longer allowed to display offers of cooperative compensation from listing brokers to buyer's brokers. You will only see those numbers if the seller agrees to a concession that is written into the Louisiana Residential Agreement to Buy or Sell.
Do I have to pay my buyer's agent out of pocket in Louisiana?
Not always, but you are responsible for the fee under your buyer representation agreement, and your agent can negotiate a seller concession that covers part or all of it. If the seller refuses, you and your agent will need to decide whether you cover the difference or move on.
How much should a buyer's agent in Louisiana charge?
There is no standard or required rate in Louisiana, and any agent who tells you a number is the going rate is breaking settlement rules. Each firm sets its own fee, so compare a few before you sign a representation agreement.
What if the seller will only cover part of my buyer's agent fee?
You can either pay the rest yourself at closing, ask your agent to lower their fee, or walk away if the math does not work. Your buyer representation agreement controls what is owed, so review it carefully before negotiating the concession.
Can my lender stop the seller from covering my agent's fee in Louisiana?
Yes, lenders cap how much a seller can contribute toward your costs, and an agent fee paid as a concession counts against that cap. Talk to your lender early so you know how much room you have before writing an offer.
What if the home appraises lower than the contract price after I asked for a concession?
A low appraisal can squeeze the room for a seller concession because the loan is based on the appraised value, not the contract price. You may have to renegotiate the concession, the price, or both for the deal to close in Louisiana.

Glossary

3 terms
RECAD — Real Estate Consumer's Agency and Disclosure
The form that lays out, in plain terms, the agency relationship between you and the agent — whether they represent you, the seller, or both.
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.

Sources

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