How the NAR Settlement Changed Buyer Agent Fees — What It Means for DPA Buyers in Tampa Bay

In August 2024, the National Association of REALTORS® finalized a landmark settlement that permanently changed how buyer agent commissions work across the United States — including Florida. For most Tampa Bay buyers, the day-to-day experience of buying a home has not changed dramatically. But for buyers using down payment assistance (DPA), the new rules introduced a real question: Who pays my buyer's agent — and can my DPA cover it?

If you are planning to buy a home in Tampa Bay in 2026 using Hometown Heroes, FL Assist, or any county DPA program, this guide explains exactly how the new commission structure interacts with your assistance — and how to structure your offer so that seller concessions and DPA work together to keep your out-of-pocket costs as low as possible.

What Did the NAR Settlement Actually Change for Florida Buyers?

Before August 17, 2024, the standard practice in Tampa Bay and most U.S. markets was for sellers to offer buyer agent compensation through the MLS. Sellers typically paid both their listing agent and the buyer's agent as part of a bundled commission at closing.

The settlement eliminated that requirement. MLS rules now prohibit listing buyer agent compensation as a standard MLS field. Instead, buyers and their agents negotiate compensation directly — before touring homes — through a written Buyer Representation Agreement. Sellers can still choose to offer buyer agent compensation, but they must do so through the purchase contract or as a seller concession, not through the MLS.

In Florida, the FAR/BAR residential purchase contract was updated to accommodate the new rules. Buyers sign a Buyer Representation Agreement with their agent before seeing homes, which outlines what the agent will be paid and how. This is now standard practice statewide.

How Does the New Commission Structure Affect Buyers Using Down Payment Assistance?

The core concern for DPA buyers is straightforward: if the seller does not cover your buyer's agent fee, and your DPA only covers the down payment and standard closing costs, you could face an unexpected expense you were not planning for.

Here is what DPA buyers need to understand about how the programs work under the new rules:

• Most DPA programs do not directly cover buyer agent fees. Florida's major state programs — Hometown Heroes, FL Assist, HFA Preferred PLUS, HFA Advantage PLUS — are designed to cover the down payment and eligible closing costs as defined by FHA, Fannie Mae, Freddie Mac, or USDA guidelines. Buyer agent commissions do not appear as a standard eligible closing cost under those loan guidelines when paid by the buyer.
• FHA guidelines are specific. FHA does not allow buyer-paid agent fees to be financed into the loan amount or paid from FHA-insured assistance funds. If a buyer pays their agent directly, those funds must come from the buyer's own verified assets or from a seller concession shown on the Closing Disclosure.
• Conventional loan guidelines allow seller concessions to cover agent fees. After the NAR settlement, Fannie Mae and Freddie Mac updated their guidelines to permit buyer agent compensation to be paid through seller concessions without it counting against the interested party contribution limits — provided it is properly documented and structured in the contract.

The practical result: the cleanest path for DPA buyers is to negotiate a seller concession in the purchase contract that covers your buyer's agent fee, while your DPA covers the down payment and remaining eligible closing costs. When structured this way, the numbers work cleanly through underwriting and your DPA approval is not affected.

How Do Seller Concessions and DPA Work Together After the NAR Settlement?

Seller concessions are amounts the seller agrees to contribute toward the buyer's costs as part of the purchase agreement. After the NAR settlement, seller concessions became the preferred mechanism for sellers who want to continue supporting buyer agent compensation without violating the new MLS rules.

For DPA buyers, seller concessions and DPA can be layered — but there are limits set by your loan type:

• FHA loans allow seller concessions up to 6% of the purchase price. This covers your buyer's agent fee, prepaid taxes, insurance, title fees, and lender origination charges.
• Conventional loans allow 3% to 9% in seller concessions depending on your down payment percentage. At 5% or more down, the limit is 6%.
• USDA loans allow concessions up to 6% as well and are still available in eligible rural areas of Tampa Bay's outer suburbs.

When you use DPA alongside a seller concession that covers your agent fee, the total assistance you receive — DPA plus seller contribution — cannot exceed your actual costs. Any excess must be reduced before closing. Your lender will calculate the numbers and tell you exactly what is allowable.

For a deeper look at how to structure offers that stack seller concessions with down payment assistance, the seller concessions and DPA stacking guide covers the mechanics in detail, including how Tampa Bay's expanded inventory in 2026 has made sellers more willing to contribute.

What Should DPA Buyers in Tampa Bay Do Before Making an Offer?

The practical steps for a DPA buyer navigating the post-NAR settlement market come down to preparation and coordination:

1. Sign your Buyer Representation Agreement before touring homes. This is now required in Florida. Know what your agent's compensation arrangement is — and how it will be paid — before you walk through a single property. Most experienced buyer's agents in Tampa Bay will walk you through this clearly.

2. Get pre-approved with an FHFC-approved lender before you shop. Your DPA pre-approval gives you the full picture: your eligible loan amount, the DPA you qualify for, the maximum seller concession your loan type allows, and the net cash you will need at closing after everything is accounted for. Without this, it is impossible to know whether your offer will pencil out.

3. Confirm your agent's compensation before writing an offer. Your agent and lender need to coordinate the numbers. If the seller is covering your agent's fee through a concession, that amount affects how the rest of the DPA and seller contribution math works. Make sure all three parties — you, your agent, and your lender — are aligned before you submit an offer.

4. Write concession requests within your loan's limits. If you ask for more in seller concessions than your loan type allows, the lender will require a contract amendment before proceeding. Writing the offer within the correct limits from the start avoids delays. Your agent should know these figures. If they do not, that is a sign to look for someone more experienced with DPA transactions.

5. Understand your earnest money obligation. With DPA, the earnest money deposit typically must come from your own funds — not the DPA. Review the earnest money guide for DPA buyers so you know exactly what to bring to escrow.

Does the NAR Settlement Make DPA Harder to Use in Tampa Bay?

The honest answer is no — not if you understand the new structure and work with an agent who has experience with DPA transactions. The core mechanics of Florida's down payment assistance programs have not changed. Hometown Heroes, FL Assist, HFA Preferred PLUS, and county programs like Hillsborough and Pinellas DPA all function exactly as they did before the settlement.

What changed is that buyer agent compensation is now a line item you must consciously address in your contract — rather than something that happened automatically through the MLS. For buyers in markets where sellers have room to negotiate (which describes much of Tampa Bay in 2026, with expanded inventory and motivated sellers), requesting a concession to cover your agent's fee alongside your DPA is a reasonable ask that closes successfully every week.

The key is working with an agent and lender who understand how all the pieces fit together. Barrett Henry, REALTOR® with REMAX Collective, has 23+ years of real estate experience helping Tampa Bay buyers close with DPA — including navigating the post-settlement commission structure. Call (813) 733-7907 to talk through your situation and get connected with an FHFC-approved lender.

For a broader overview of what first-time buyers in Tampa Bay need to know beyond just DPA — including the new buyer representation requirement — firsttimehomebuyertb.com has detailed guides on navigating every step of the purchase process. And when you are ready to search for active listings across Hillsborough, Pinellas, Pasco, and Manatee counties, nowtb.com has the most complete Tampa Bay home inventory updated daily.

How Do Closing Costs Work When Both DPA and Seller Concessions Are in Play?

When you have both DPA and a seller concession in your transaction, the title company applies funds in a specific order at closing. Generally, DPA funds are applied to the down payment first, and remaining DPA is then applied to eligible closing costs. Seller concessions cover additional closing costs — which can include buyer agent compensation, prepaid taxes, insurance, and lender fees — up to the allowed limit.

The end result for many DPA buyers is a closing where the total cash needed from their own pocket is minimal — sometimes as low as a few hundred dollars in verified funds, plus the earnest money they already deposited (which typically credits back at closing). For a full breakdown of what buyers actually pay at the closing table, see the Tampa Bay closing costs guide.