Last Friday it was announced that NAR reached an agreement to resolve compensation claims. The media and industry were ablaze with headlines and analysis regarding the implications for buyers and sellers, as well as the 1.5 million members of NAR.
The proposed settlement is not yet court approved. Until then SCRMLS is providing details from facts.realtor to our members and Directors while assuring them we will navigate any future together.
The agreement would resolve claims against NAR, over one million NAR members, all state/territorial and local REALTOR® associations, all association-owned MLSs, and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below.
The key terms in the agreement that have an immediate bearing on our MLS if the settlement is approved are:
Compensation offers moved off the MLS: NAR has agreed to put in place a new rule prohibiting offers of compensation on the MLS. Offers of compensation could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. And sellers can 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 for MLS participants acting for buyers: While NAR has been advocating for the use of written agreements for years, in this settlement we have 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.
Here are the resources that NAR has provided:
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