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The real estate industry has been rocked by significant changes following the National Association of Realtors (NAR) settlement. For real estate agents, staying informed and adapting to these developments is crucial.

Key Components of the Settlement

In March 2024, the NAR Settled for $418M against the class-action lawsuits targeting broker commissions. The settlement introduces several critical requirements and rule changes for both buyer brokers and listing brokers, including the removal of commissions from the platform entirely.

These changes will go into effect on August 17, 2024, requiring buyer brokers and listing brokers to enter into written agreements with buyers prior to touring a home. These written agreements must entail the following: 

  • Full Disclosure:
    • Written agreements must include a specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive.
  • Objective Compensation:
    • Compensation must be objective, such as a flat fee, a percentage, or an hourly rate.
    • Open-ended compensation agreements are no longer permitted.
  • Prohibition of Excessive Compensation:
    • Agents are prohibited from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed upon in the agreement with the buyer.
  • Negotiable Commissions:
    • A conspicuous statement must be included in the agreement, indicating that broker fees and commissions are fully negotiable and not set by law.

According to a survey by St. Louis-based real estate company Clever Real Estate, about 67% of the general public supports the changes, while 70% of real estate agents oppose the changes made by the settlement.

MLS Participation in the Settlement

Both Relator-affiliated and non-Realtor-affiliated MLSs had until June 18, 2024, to opt into the NAR settlement. According to a report from Inman News, 18 of the 40 non-Realtor MLSs have chosen to opt into NAR’s settlement agreement, whereas only 18 of 602 Realtor-affiliated MLSs had not opted into the settlement.

Per the settlement, both non-Realtor and Realtor-affiliated MLSs have until September 16, 2024 to enforce the rule changes made by the settlement.

Upcoming Hearings and Approvals

Investments and equity research firm Keefe, Bruyette, & Woods (KBW) has coined Summer 2024 as “the summer of uncertainty” as agents await updates. 

While the settlements for RE/MAX, Anywhere Real Estate, and Keller Williams have already received final approval, the preliminary settlements by HomeServices of America for $250M and NAR for $418M are still pending final fairness hearings in November. A hearing is scheduled for November 26, 2024 to review the NAR settlement for final approval. 

Discover the latest updates by tracking commission lawsuits through Housingwire’s timeline backdating to 2019.

The Role of Training and Education

Adapting to these changes requires ongoing education and training. Real estate associations and MLSs are stepping up to provide the necessary resources to help agents navigate the new landscape.

REsides University

For instance, REsides, a MLS based in Hilton Head, South Carolina, recently launched REsides University. This platform offers classes and webinars designed to guide agents through these changes. 

Despite not opting into the settlement, REsides acknowledges that changes are inevitable. Their proactive approach in launching REsides University sets a positive example for other MLSs and real estate associations.

Miami Association of Realtors

Teresa King Kinney, CEO of The Miami Association of Realtors, which boasts over 60,000 agents, has been proactive in educating her members. Per The Business Journals, Kinney has led efforts in the wake of the NAR settlement to train association members through newly developed seminars, webinars, and training curriculum. 

Stay Ahead of the Curve with DASH

The NAR settlement marks a significant turning point in the real estate industry. By keeping up with updates, participating in training and education programs, and adapting to the new requirements, real estate agents can navigate these changes successfully. 

In an industry as dynamic as real estate it’s vital to stay ahead of the curve and DASH was created for just that. With DASH, real estate agents have access to the latest and most comprehensive new development content.

Whether your client is searching for condos, single-family homes, beach views, or urban settings,  DASH has it all. Spend less time clicking, and more time closing deals. Stay ahead of the curve by signing up for a free DASH account below.

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