VA Temporarily Lifts Ban for Professional Real Estate Representation Payments

In a significant development, the Department of Veterans Affairs (VA) is set to temporarily lift its prohibition on buyers directly paying for professional real estate representation. This announcement, made by VA Deputy Director of Policy Michelle Corridon at a recent Mortgage Bankers Association conference in New York, marks a critical shift in the VA’s home loan guaranty program, the only loan program with such a restriction.

Although not yet an official policy change, Corridon's remarks have been met with widespread approval from the real estate community, particularly among those serving veteran buyers. The prohibition had left veterans with unusual options, especially in situations where sellers offered no compensation to the buyer’s agent. Sometimes veterans lacked professional representation or were forced to consider less favorable loan alternatives.

The National Association of REALTORS® (NAR) has been at the forefront of the advocacy efforts to lift this ban. "NAR launched an all-hands advocacy effort on this issue, meeting with VA officials, engaging with lawmakers, and rallying our industry partners to ensure this prohibition was lifted,” says Shannon McGahn, chief advocacy officer at NAR. “This is also a testament to the thousands of REALTORS® who came to Washington just a few weeks ago with a unified message. Without this change, thousands of veteran buyers could be denied access to professional representation in their pursuit of the American Dream of homeownership. Taking this extra step ensures veterans have the same opportunity as others to compete in a tight housing market. We applaud the VA for recognizing this danger and acting swiftly to protect veterans.”

Las Vegas REALTORS® (LVR) is equally enthusiastic about this temporary lift. The change promises to level the playing field for veteran buyers in Las Vegas, allowing them to benefit from professional guidance in their home-buying journey. In a competitive market like Las Vegas, professional representation is crucial for navigating complex transactions and securing the best possible outcomes.

The VA's decision is a crucial step in ensuring that veteran buyers have the same opportunities as other buyers. LVR remains committed to supporting veteran homebuyers and will continue to advocate for policies that protect their interests and promote fair access to homeownership.

As the VA moves towards a formal rule making process, Las Vegas REALTORS® will stay engaged with NAR and other industry partners to help ensure that the needs and rights of veteran homebuyers are upheld. This temporary policy change is a victory for veterans and a testament to the power of collective advocacy in the real estate community.