The National Association of Realtors (NAR) has announced significant policy changes following a recent settlement. These changes, outlined on NAR’s settlement FAQ page, will take effect on August 17, 2024.
According to the settlement, NAR must implement the required practice changes by the date of class notice. The earliest date for this notice is August 17, 2024. Realtor MLSs are also mandated to comply with these changes by this date to align with NAR's national MLS policies.
NAR provided details of these practice changes in early May, allowing a three-month preparation period for members and MLSs. MLSs that have opted into the settlement agreement have until September 16, 2024, to implement the necessary policy changes and be considered Released Parties under the settlement.
NAR emphasized that if Realtor MLSs do not implement these practice changes by August 17, they will not be in compliance with mandatory NAR policy. To facilitate this transition, NAR released the exact language of the practice changes in early May.
The organization reiterated its belief in the value provided by buyer brokers and noted that offers of compensation through MLS would no longer be an option. Compensation types available for buyer brokers will continue to take multiple forms and can still be negotiated off-MLS through consultation with real estate professionals.
Despite long-standing support for cooperative compensation policies, NAR acknowledged that continued litigation would harm its members and their businesses. Therefore, it agreed to prohibit offers of compensation on MLS while maintaining that such offers benefit buyers and sellers.
Compensation remains negotiable between agents and consumers they represent. Listing brokers should inform clients about the change regarding offers of compensation on an MLS but note that sellers can still offer buyer concessions on an MLS.
The ethical duties owed by NAR members to their clients remain unchanged. Realtors® are required to protect their clients' interests and treat all transaction parties honestly as per Article 1 of the Code of Ethics (COE).
NAR continues its commitment to promoting transparency in real estate transactions and ensuring consumers have access to reliable property information and affordable professional representation.
Further details about the settlement can be found on NAR’s website at nar.realtor/the-facts/nar-settlement-faqs.
Tracey C. Velt is a contributing editor for Florida Realtor® magazine.
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