The National Association of Realtors (NAR) issued a final reminder that dramatic changes in real estate practice, as described in the NAR Proposed Settlement Agreement, will take effect across the country on August 18, 2024. This settlement would bring an end to claims brought by home sellers over broker commissions.
Under the terms of the settlement, all REALTOR® Multiple Listing Services (MLSs), which are owned exclusively by one or more REALTOR® Associations, must adopt these changes by the deadline to comply with NAR policies. A notable change is the prohibition of offers of compensation on MLS platforms. While offers of compensation will no longer be displayed on MLSs, consumers can still negotiate and arrange compensation off-MLS through direct consultation with their real estate professionals.
Furthermore, the settlement mandates that buyer representatives must obtain a signed buyer agreement before permitting a buyer to view any property. This does not mandating which form of agency agreement or what form of relationship between buyer and agent should be in existence.
The date also marks the first opportunity for members of the “Settlement Class”—home sellers who sold a property on an MLS in the U.S. during the eligible periods and paid a brokerage commission—to receive notice of NAR’s proposed settlement in the Sitzer-Burnett case. This class notice will inform affected individuals of their rights, options, and deadlines under the proposed settlement and will be distributed both electronically and by mail.
For further information, including details on what these changes mean for REALTORS® and consumers, NAR has provided resources on their website and a dedicated settlement support line.
