NAR Settlement FAQs – What you need to know
We recommend that you also explore NAR's FAQs which are very specific to why they entered into this settlement, who is covered, recommendations for compensation and buyer broker agreements, and NAR operations going forward. Whether or not you are a Realtor® member, the information offers some clarity for our industry.
Why are these changes happening?
NAR announced that a settlement agreement had been reached that would end litigation of claims brought on behalf of home sellers related to broker commissions across the United States on on March 15. The settlement would release claims against many parties and also cover some copycat lawsuits. The changes outlined are all part of the settlement agreement terms. Read more about the cases and settlement details at NAR's webpage here.
Are all of these details final?
The settlement agreement has preliminary approval. Final approval is scheduled to be granted in November, however the changes outlined are set to take place late Summer 2024.
When will these changes go into effect?
NAR requires that these changes be in place by August 17, 2024. We will transition through the changes outlined above by late Summer 2024.
Can my seller still offer compensation to the buyer broker?
Yes. The settlement states that this is allowed but cannot be included in your MLS listing. Ensure that your commission details (always - for list or buy side) are transparent and negotiable, and that your client is fully educated on those details.
Can my seller's offer of compensation be entered on my listing in the MLS?
No! According to the NAR settlement agreement, which requires that the compensation fields be removed from the MLS, this information is not allowed in the MLS database, IN ANY FIELD. Please do not manipulate your listing to insinuate what the offer may be in any area of your listing. This important piece of the settlement of course applies as well to MLS-enabled products and tools such as MLS 3rd party vendors that syndicated compensation fields previously.
If I have an on-market listing, will the compensation info automatically be removed?
Yes. Once we make the required changes late Summer 2024, this will also remove existing compensation data on any on-market listings.
Do I need to start changing anything in my business?
Check with your Broker-in-Charge to see if there are any brokerage-level changes being implemented now. Otherwise, continue as normal and ensure you are operating under the items listed in the "Strengthen your Practices" section above. If you are a buyers agent, work on being able to clearly demonstrate your value so that you are ready as the industry adapts to the changes that will evolve from this settlement.
What if my clients ask about the lawsuit(s)?
Whether you are a listing or buyers agent, this question is arising. We recommend sharing the NAR resource page Facts for Realtors® as a way to offer a high level overview of the Sitzer/Burnett case facts. As always, involve your Broker-in-Charge and legal counsel.
Where can I find more information?
We will regularly post relevant updates on this page as it relates to the MLS facets of the NAR settlement. Also, keep an eye out for BCAR/NCRMLS MLS emails and Remember you can find the full settlement details at NAR's Facts for Realtors® and Frequently Asked Questions page, where they are posting regular updates as well.
cynthia@bcarnc.com | 910-754-5700