FAQs & Other Resources

Proposed Settlement 

Who is involved in the settlement?

NAR, over one million NAR members, all state/territorial and local REALTOR® associations, all association-owned Multiple Listing Services (MLSs), and all brokerages with a NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below.

What is included in the proposed settlement?

The proposed settlement has NAR paying $418 million over four years. It covers most REALTORS®, Real Estate Associations, MLSs and brokerages with annual transaction volume of less than $2 billion.

What happens to the other copycat cases?

More than 20 anti-trust copycat cases have been filed including one in Florida, claiming anti-trust violations due to the blanket and unilateral offer of compensation offered between brokers though the MLS. This proposed settlement needs to be considered by the judge, along with any additional briefs that may be submitted opposing or supporting the settlement. If approved, the settlement will end all copycat litigation everywhere.

When will the settlement be effective?

If approved, the settlement will be effective mid-July.

Preliminary Approval

Do individual NAR members need to take any action in order be covered by the settlement agreement?

No. If you are an NAR member as of the date of the class notice, you are covered by the settlement unless:

• You are an employee of: At World Properties, LLC; Douglas Elliman, Inc.; Douglas Elliman Realty, LLC; eXp Realty, LLC; eXp World Holdings, Inc.; Hanna Holdings, Inc.; HomeSmart International, LLC; Howard Hanna Real Estate Services; Realty ONE Group, Inc.; Redfin Corporation; United Real Estate; or Weichert, Realtors® OR
• You are associated with HomeServices of America or one of its affiliates.

The date of the class notice has not been set, but it will be sent no earlier than August 17, 2024.

Which entities need to take action in order to be covered by the settlement agreement?

All REALTOR® MLSs, brokerages with 2022 total transaction volume for residential home sales in excess of $2 billion, and non-REALTOR® MLSs who want to be covered by the settlement must take action. The deadline to execute the relevant appendices to be released under the settlement is June 18, 2024.

• REALTOR® MLSs: In order to be released under the settlement agreement, all MLSs wholly owned by REALTOR® associations must agree to and execute Appendix B - REALTOR® MLS “Opt In” Agreement and return it to the email addresses [email protected], [email protected], and [email protected].
• Brokerages with 2022 total transaction volume for residential home sales in excess of $2 billion: In order to be released under the settlement, eligible brokerages must agree to and execute Appendix C – Brokerage “Opt In” Agreement and return it — along with the required documentation and indication noted in paragraph 20 of Appendix C — to the email addresses [email protected], [email protected], and [email protected].
• Non-REALTOR® MLSs: In order to be released under the settlement, MLSs not wholly owned by REALTOR® associations must agree to and execute Appendix D – Non-REALTOR® MLS “Opt In” Agreement and return it — along with the required indication noted in paragraph 20 of Appendix D — to the email addresses [email protected], [email protected], and [email protected].

For questions about completing an opt-in agreement, please contact Mike Rohde.

Compensation

Who determines compensation?

Commissions are still negotiable and WILL still be offered. Importantly, the proposed settlement DOES preserve the ability for buyer’s agents to be compensated for selling real estate, but it WILL change how and where compensation is discussed and agreed to. Offers of compensation supported by state law will remain an option—just not in the MLS. Sellers can still offer buyer-broker compensation.

How will Buyer's be affected?

The proposed changes could put more pressure on buyers if they are responsible for compensating their own agents directly, at a time when home prices are high and elevated mortgage rates make borrowing expensive. Some buyers might have to lower their target price in their home search to account for this newly-added expense, but even if home prices were to fall in the future, buyers’ costs are likely to rise by a similar amount if they are having to compensate agents directly.

The proposed settlement will also require a home buyer to sign a buyer’s representation agreement prior to viewing any homes with your real estate agent. This agreement will cover the following things at a minimum:

• What your agent can do by law
• What your agent can’t do by law
• What services and support will your agent deliver routinely
• A start and end date for the agreement
• Payment for services

What will happen to commissions in the MLS?

If the settlement is approved, the offer of compensation will be REMOVED from the MLS. After new rules, listing brokers and sellers will not make compensation offers through the MLS, but may continue to offer compensation off the MLS.

How are commissions split?

In most real estate transactions, there is commission that is split four ways. The agent and the brokerage representing the seller and the agent and brokerage representing the buyer are each compensated when a home is purchased. The responsibility of the selling and buying agent is to provide support, counsel, and education and to help close the transaction. The role of the two real estate brokerages in the transaction is to provide education and oversight to ensure that agents deliver professional counsel and support, and to ensure all legal documentation is accurate, comprehensive, complete, and transparent. Many of the transaction documents you sign today are built by the Florida Real Estate Commission and the Florida Association of REALTORS® to protect your best interests as a home buyer and seller.

REALTORS® 

Will NAR dues increase?

No, NAR dues will not increase for 2024 and 2025.

Buyers

How can Buyer's Agents Support Consumers?

There are several processes and technologies offered by GTR members that can assist consumers with the home buying and selling process. REALTORS® can help consumers find resources to secure additional down payment monies to help consumers buy their dream home. They can also provide a comprehensive analysis of the market to help consumers understand what is really happening in the real estate market today. Armed with these tools, consumers can better understand how to optimize their real estate investment.