The National Association of Realtors (NAR) Settlement Information. The National Association of Realtors (NAR) entered into this settlement with the aim of achieving two key objectives. They sought to secure a release of liability for its members, associations, and MLSs, while also preserving the choices consumers have regarding real estate services and compensation. This proposed settlement was seen as a means to achieve these goals and continue the work of safeguarding the right to real property for all.
The key terms of the agreement encompass several significant factors. Firstly, the agreement would release NAR and over one million NAR members, as well as state/territorial and local REALTOR® associations, MLSs, and certain brokerages, from liability related to broker commissions in home sales. NAR fought to ensure the inclusion of all members in the release, with the exception of agents affiliated with HomeServices of America and its related companies.
What the NAR Settlement Means for You
Additionally, the settlement includes a provision for a new rule prohibiting offers of compensation on an MLS, taking effect August 17, 2024. Furthermore, written agreements will be required for MLS Participants working with buyers before touring a home, with the same effective date. NAR has also committed to a payment of $418 million over approximately four years without an increase in membership dues for 2024 or 2025 due to this payment.
Despite these changes, NAR maintains its position of denying any wrongdoing in connection with the MLS cooperative compensation model rule, asserting that cooperative compensation and its current policies benefit buyers and sellers. Lastly, NAR remains confident that it and its members can still achieve their goals through this settlement.
The change in the cooperative compensation policy in the settlement does not imply an admission of wrongdoing according to NAR. They continue to affirm the beneficial aspects of their current policies and express confidence in achieving their objectives through this settlement.
