Since NAR announced its proposed settlement details, there have been a lot of questions – understandably so. For now, there are two immediate things to focus on:
- Compensation offers will no longer be allowed on the MLS. NAR will implement a new rule prohibiting compensation offers on the MLS. However, compensation offers could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Sellers can also offer buyer concessions on an MLS (for example, concessions for buyer closing costs). This change will go into effect in mid-July 2024.
- Written agreements will be required when MLS participants act for buyers. While NAR has advocated for using written agreements for years, in this settlement, NAR has agreed to require MLS participants working with buyers to enter into written representation agreements with their buyers. This change will go into effect in mid-July 2024.
NAR continues to update its FAQs on facts.realtor. Scroll down to the bottom of the page, find the blue square in the middle, and click on “Litigation FAQs.” Other resources are there to help you understand the settlement terms. NAR is the most reliable source for current, practical information about the pending agreement.
NAR will share more materials and schedule additional briefings to keep members informed. It is business as usual until the new rules come out in mid-July. Please keep in mind that the rest of the settlement's terms will not be official until they are reviewed and approved by the court, which could take several months or more.