National Association of Realtor’s Settlement Explained
“Does this make any sense?”
NAR settles litigation over broker commissions on behalf of home sellers. This ending claims against over a million members, associations, MLSs, and brokerages with residential transaction volumes of $2 billion or less in 2022.
NAR, subject to court approval, denies wrongdoing regarding the MLS cooperative compensation model. They agree to pay $418 million over four years. Nykia Wright, Interim CEO, states the settlement benefits members and consumers. Most members and stakeholders are released from liability. The cooperative compensation remains an option. NAR secures a mechanism for entities with high transaction volumes to obtain releases. Home Services of America agents are not released. National Association of Realtor’s Settlement introduces a new MLS rule prohibiting offers of broker compensation on the MLS but allows off-MLS negotiations. Another rule requires MLS participants working with buyers to enter written agreements. These changes start in mid-July 2024. Despite costs, NAR believes the settlement benefits the industry. Kevin Sears, NAR President, emphasizes future-focused leadership. NAR represents over 1.5 million real estate professionals.
National Association of Realtor’s Settlement and Approval is now completed.
