Trust This. Special Edition. March 15, 2024.

NAR settles commission lawsuits; hangs buyer agents out to dry

The National Association of REALTORs sent out an e-mail to all its members at 10:30 this morning to let them know they’ve reached a settlement in the commission-fixing lawsuits nationwide.

Why it matters: It will change the way REALTORs, especially those who work with buyers, have gotten paid for over 50 years.

  • MLS participants working with buyers will be required to enter into written representation agreements with their buyers starting in July.

  • NAR will pay $418 million over four years to the plaintiffs.

  • A new rule, also effective in July, will prohibit offers of compensation on the MLS, meaning there will be no entries regarding what a buyer’s agent (cooperating agent) would receive if they procure a buyer in a transaction.

What they’re saying: The New York Times has outlined at least four ways this could change the industry.

💭 Our thought bubble: It’s been estimated in the past that such a result could lead to up to 1 million REALTORs leaving the profession. Also, a federal report released yesterday found that this result could have devastating effects on consumers and the housing market as a whole.

  • July, typically the hottest month for real estate transactions in the U.S. could be unusually slow this year once the changes go into effect.

  • Local traditions will create a hodgepodge of customs across the country so that buyers and sellers will no longer have a common way of buying and selling homes.

Go deeper: NAR

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