Two years after the National Association of Realtors (NAR) mandated written buyer representation agreements before home tours, contract comprehension platform LernMore reports that consumers continue to struggle with understanding key clauses. The NAR policy, implemented as part of its commission lawsuit settlement, aimed to increase transparency in agent compensation and buyer representation.
LernMore, an AI-powered tool launched in 2024, assists buyers, sellers, renters, and agents in deciphering transaction documents, including buyer agreements, purchase contracts, and leases, by breaking down provisions into plain language with practical examples. Founder Leslie Lerner, a veteran of the real estate industry and a Governor-appointed member of the Texas Real Estate Commission, stated that the platform was built to help parties understand what they are signing, thereby preventing misunderstandings that can lead to disputes.
For real estate professionals, the emerging risk is not just ensuring documents are signed but that clients fully comprehend the terms, a concern amplified for consumers with limited English proficiency or those signing multiple documents before significant engagement with an agent or attorney. LernMore's platform offers clause explanations in everyday language, real-world examples, and features like text-to-speech in over 70 languages. While some brokerages use LernMore for agent training, a growing number of agents are subscribing to offer it as a client benefit. Since the NAR policy took effect, LernMore has seen an increase in consumers directly using the platform to understand contracts before signing, as disputes can negatively impact agents' time, income, and reputation.
