Important changes take effect August 17, 2024 – here’s what you need to know:
(Nothing in this post should be construed or relied on as legal advice. Please, consult an attorney to understand details and how these changes may impact you.) NAR reached a settlement to resolve legal claims related to broker commissions in home sales. Under the agreement, NAR and its members—over one million real estate agents, associations, MLSs, and brokerages with less than $2 billion in 2022 residential transaction volume—are released from liability for these claims. Agents associated with HomeServices of America and some other companies are not included in the release.
As part of the settlement, NAR will implement a new rule prohibiting offers of compensation on MLS platforms starting August 17, 2024. Offers of compensation can still be negotiated off-MLS. MLS has been defined broadly to essentially include an aggregators of this data. Sellers can still offer concessions on MLS listings, like covering buyer closing costs. And, Buyer Agent Compensation can be negotiated off the MLS.
Additionally, starting August 17, 2024, real estate agents working with buyers must have a written agreement with their clients before showing them homes.
NAR will pay $418 million over four years as part of the settlement. Despite this payment, membership dues for NAR will not increase in 2024 or 2025.
NAR maintains that its practices benefit both buyers and sellers by promoting property ownership, especially for lower- and middle-income buyers (we at BAC-Search agree). The settlement allows NAR to continue pursuing these goals while resolving legal challenges.
Link to NAR Settlement FAQs
Suggestions on how to prepare for these changes