NAR Settlement Updates
ON AUGUST 14, 2024, STATE-WIDE MLS REMOVED COMPENSATION FIELDS AND RULES FROM MLS to comply with a proposed NAR Settlement Agreement.* The settlement prohibits offers of cooperative compensation in the MLS. Be aware that although the settlement agreement does not prohibit listing brokers from offering compensation to cooperating brokers outside of MLS, the US Department of Justice continues to strongly oppose offers of compensation from listing brokers and sellers. *See settlement compliance requirements here: NAR summary of MLS Policy changes.
UPDATES
- 1/13/25: The Supreme Court ruled that it would not hear arguments in NAR’s appeal in its legal battle with the DOJ.
- 12/2: NAR Settlement faces appeal. An entity known as Spring Way Center along with several homesellers appealed the deal which was approved by Judge Stephen Bough last week. NAR will continue to advocate for the settlement on appeal.
- 11/26 pm: The U.S. District Court for the Western District of Missouri granted final approval of NAR’s settlement in the Sitzer/Burnett case.
Read the News Release: US District Court for the Western District of Missouri Grants Final Approval of NAR Settlement
Message from NAR President Kevin Sears: ""Earlier today, the U.S. District Court for the Western District of Missouri granted final approval of NAR’s settlement agreement in the Sitzer/Burnett case. The Court heard from all parties as well as objectors and the Department of Justice. Once arguments concluded, the Court quickly ruled to grant final approval. We expect the Court to issue a formal written order in the near future, and we will share that filing with you once it is available.
NAR’s goal throughout this process was to protect as many NAR members and their businesses; state, local, and territorial associations of REALTORS®; and multiple listing services as possible while preserving choice for consumers in their approach to buying or selling a home. The principles of transparency, competition, and choice are core to the settlement agreement and empower real estate professionals and consumers to negotiate the services and compensation that work for them. Preserving this optionality, including whether to offer compensation, is important to NAR’s efforts to support first-time homebuyers and buyers from marginalized communities.
With this step behind us, NAR members must remain focused on implementing the practice changes and helping consumers navigate the new landscape. NAR and its membership must all continue to communicate and demonstrate the unique value of REALTORS® today and every day."
11/25: The U.S. Department of Justice has filed a "Statement of Interest" related to NAR's proposed settlement of claims regarding broker commissions. Based on dialogue with the DOJ over the course of this year, this possibility was expected.
In its statement, the DOJ raises concerns about the requirement that MLS Participants must enter a written buyer agreement when they are working with buyers prior to touring a home. The DOJ is not a party to the settlement agreement or a class member. The Court can consider the DOJ's perspective alongside the other arguments. NAR will continue to advocate for final approval in the lead-up to and at the hearing on November 26.
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WEBINARS: Did you miss any of the RI REALTORS Drop-in webinars? Watch the recordings on the Video Library to hear settlement compliance information and answers to common questions.
- Find NEW resources to help explain the changes to consumers below these updates.
- CLASS ACTION NOTICES NAR does not manage the class notice process. NAR members may, however, receive questions from consumers who receive postcards regarding the class action from the class administrator. Members should direct consumers to the settlement website (www.RealEstateCommissionLitigation.com) where they can find relevant information. You may also direct them to the settlement administrator at 888-995-0207 for additional guidance. NAR MEMBERS SHOULD REFRAIN FROM FURTHER ADVISING CONSUMERS ON CLASS NOTICE. To learn more, watch this quick video.
- FORMS - New forms that comply with the settlement agreement can be found on TransactionDesk and other vendor platforms. A complete list of forms noting their language changes/additions can be found here or you can watch the recording of the July 10th session for a complete review of new forms from RIAR Forms Chairman Ryan Antrop.
- Regularly Updated Settlement FAQs from NAR