Court Approval Pending for NAR’s Nationwide Settlement Impacting Commissions and MLS Policies
On March 15, 2024, the National Association of REALTORS® (NAR) announced a nationwide settlement to address the lawsuits brought by home sellers across several states regarding real estate commissions. The settlement, which includes the Houston Association of REALTORS® (HAR) along with other state and local associations, requires NAR to pay $418 million in damages and to implement significant changes in its policies.
A critical component of the settlement involves the repeal of the commission-sharing policy that had been in place. Under the new rules, brokers and agents will now be required to negotiate compensation directly with their clients, rather than relying on preset commission structures in the Multiple Listing Service (MLS). This change also underscores that there is no standard 6% commission rate, as compensation has always been negotiable between agents and consumers…