NAR Settlement Facts, Information & Updates: Essential Resources for REALTORS® and Consumers
As part of the National Association of REALTORS® (NAR)’s commitment to assist both REALTORS® and consumers in navigating the forthcoming real estate practice changes, NAR is pleased to announce the publication of several new consumer-focused resources. These tools are designed to support NAR members as they adapt to and help consumers understand the evolving real estate landscape. All resources are available on facts.realtor, the NAR dedicated center for information on the settlement.
On August 17, 2024 changes to the real estate industry came into effect. These changes - the result of a national settlement agreement related to broker compensation - altered industry practices across the nation. There are two major topics associated with these changes.
First, offers of compensation will be prohibited from appearing on REALTOR® owned Multiple Listing Services (MLS).
It’s important to understand that home sellers and brokers may still offer compensation off MLS. Compensation can include a range of options, including a fixed-fee paid directly by consumers, concessions from the seller, or a portion of the listing broker’s compensation.
What doesn’t change is that compensation and fees have been and continue to be negotiable.
The second change will require that agents working with a buyer enter into a written agreement before touring a home. The agreement must clearly and specifically set out the amount or rate of compensation. The written agreement requirement does not require any type of professional relationship between real estate professionals and buyers.
Change can be tough, but these new rules help move our industry in a positive direction. They raise the bar on transparency and fairness, and they emphasize the importance of clear, negotiated agreements that protect both agents and consumers.