Here’s a summary of what the settlement is about:
What You Need to Know About the 2024 NAR Settlement
In 2024, the National Association of Realtors (NAR) settled several class-action lawsuits that challenged certain real estate compensation practices. Although NAR denies any wrongdoing, it agreed to the settlement to move forward and bring clarity to the industry.
As a result, a few important changes took effect on August 17, 2024:
- Agents can no longer advertise buyer agent compensation in the MLS. Instead, compensation is discussed and negotiated directly between the parties, either before or during the offer process.
- Buyers must sign a written agreement with their agent before touring homes. This helps everyone understand the services being provided and how the agent will be compensated.
- Sellers can still offer concessions to buyers. Buyers may use these concessions toward closing costs and other eligible expenses.
To comply with the new rules, the real estate industry updated many of its forms and procedures. However, the overall process of buying and selling a home remains much the same.
Below, you’ll find PDF resources from the National Association of Realtors that explain these changes in more detail. If you have questions about how the settlement affects you, feel free to contact us. We’re happy to help.
