March 15, 2024
Media Contact:
Legal, Fostering Consumer-Friendly Real Estate Marketplaces
- NAR Media Contacts
- Statistical Release Schedule
- Op-Eds & Letters to the Editor
- NAR Fact Sheet
- NAR in the News
Share
National Association of REALTORS® Announces Settlement to Benefit Home Sellers and Homeowners
CHICAGO (March 15, 2024) – The National Association of REALTORS® (NAR) has reached an agreement to end litigation related to broker commissions, benefiting home sellers and homeowners. This settlement will resolve claims against NAR, over one million NAR members, state/territorial and local REALTOR® associations, association-owned MLSs, and brokerages with NAR members as principals with a residential transaction volume in 2022 of $2 billion or below.
Subject to court approval, the settlement includes a $418 million payment by NAR over four years. Despite denying any wrongdoing regarding the Multiple Listing Service (MLS) cooperative compensation model rule introduced in the 1990s, NAR has agreed to this settlement to benefit its members and consumers.
“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers. It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals,” said Nykia Wright, Interim CEO of NAR.
Key outcomes of this resolution include the release of most NAR members from liability and the preservation of cooperative compensation as an option for consumers. The agreement also includes a mechanism for larger brokerage entities and non-REALTOR® owned MLSs to obtain releases.
Under the settlement, a new MLS rule will prohibit offers of broker compensation via the MLS, although these offers can still be negotiated off-MLS. Additionally, NAR will require MLS participants to enter into written agreements with buyers, ensuring transparency in the services and value provided.
“Ultimately, continuing to litigate would have hurt members and their small businesses,” said Ms. Wright. “While there could be no perfect outcome, this agreement is the best outcome we could achieve in the circumstances. It provides a path forward for our industry, which makes up nearly one-fifth of the American economy, and NAR. For over a century, NAR has protected and advanced the right to real property ownership in this country, and we remain focused on delivering on that core mission.”
NAR President Kevin Sears emphasized NAR’s commitment to its members and consumers: “NAR exists to serve our members and American consumers, and while the settlement comes at a significant cost, we believe the benefits it will provide to our industry are worth that cost. NAR is focused firmly on the future and on leading this industry forward. We are committed to innovation and defining the next steps that will allow us to continue providing unmatched value to members and American consumers. This will be a time of adjustment, but the fundamentals will remain: buyers and sellers will continue to have many choices when deciding to buy or sell a home, and NAR members will continue to use their skill, care, and diligence to protect the interests of their clients.”
The National Association of REALTORS® represents over 1.5 million members in all aspects of residential and commercial real estate. The term REALTOR® denotes a real estate professional who is a member of NAR and adheres to its strict code of ethics.
Connect with us:
