Residential Real Estate

National Association of Realtors® practice change implemented on Aug. 17

By Staff Report, posted 1 year ago
The National Association of Realtors® is America's largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. 

On Aug. 17, 2024, practice changes following the National Association of Realtors® 's Proposed Settlement Agreement, designed to resolve claims brought on behalf of home sellers related to broker commissions, were officially implemented across the country.

REALTOR® MLSs (those owned exclusively by one or more REALTOR® Associations) were required to implement the changes by Aug. 17 to remain in compliance with NAR policy.

Under the settlement, the following practice changes are now in effect:

  • Offers of compensation will be prohibited on Multiple Listing Services (MLSs). Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals.
  • Agents working with a buyer must enter into a written buyer agreement before the buyer can tour a home. The practice changes do not require an agency agreement or dictate any type of relationship.

Additionally, Aug. 17 marked the first date members of the “Settlement Class”— home sellers who sold a home on an MLS anywhere in the U.S. during the eligible date ranges and paid a commission to a real estate brokerage in connection with the sale of the home—can be informed about NAR's proposed settlement of the Sitzer-Burnett case, through a process called class notice. Notice will be distributed by mail and electronically. Class notice informs class members of their rights, options and deadlines to exercise those rights and options under the proposed settlement.

Visit facts.realtor for the latest updates on the settlement and practice changes and for additional resources to assist with implementation of the settlement terms. 

For more information on what class notice means for REALTORS®, reference NAR's video here. Consumers with questions about the class notice or eligibility processes should reference the settlement website or call the settlement administrator at 888-995-0207 for further guidance.

 

 

 

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