The NAR Settlement and Ongoing Lawsuits: A New Era in Real Estate

Background of the Settlement

In October 2023, a federal jury found the National Association of REALTORS® (NAR) and several major brokerages liable for conspiring to inflate real estate commissions, violating antitrust laws. The verdict stemmed from the case Burnett v. National Association of Realtors, where plaintiffs argued that NAR's policies led to higher costs for home sellers.

“This settlement marks a significant shift towards transparency and fairness in the real estate industry,” said Ron Mazier, Chief Economist.

Key Changes from the Settlement

• Elimination of MLS Commission Offers: Sellers and their agents can no longer use Multiple Listing Services (MLS) to offer commissions to buyer agents.
• Mandatory Buyer-Agent Agreements: Buyers must sign a written agreement with their agent before touring homes, outlining compensation terms.
• Increased Negotiability: Commissions are now more negotiable, potentially leading to cost savings for both buyers and sellers.

Implications for Buyers and Sellers

For sellers, the removal of mandatory commission offers on MLS platforms could reduce selling costs. Buyers, on the other hand, gain greater clarity and control over the services they receive and the fees they pay, fostering a more competitive environment among buyer agents.

Ongoing Legal Developments

While the NAR settlement addresses major concerns, other lawsuits continue to challenge real estate commission structures. Notably, HomeServices of America and its affiliates were not included in the NAR settlement and are still facing legal scrutiny.

View the full settlement details at the National Association of REALTORS®