National Association of REALTORS® Class Action Settlement and What it Means to You
National Association of REALTORS® Class Action Settlement and What it Means to You
On November 26, 2024, the Courts granted final approval of the National Association of REALTORS (NAR) proposed settlement agreement to resolve class action claims related to Broker commissions. Many of you have heard the rumblings, but if you are a REALTOR, you already know the facts. REALTORS are members of a Local REALTOR Association, State REALTOR Association, and the National Association of REALTORS NON-REALTORS holding licensees, are not a part of the settlement. For a better understanding, “Compensation” has replaced the word, “Commission.” The settlement outlined specific Practice Changes in the way we work with Buyers and Sellers. Multiple Listing Services members had Practice Changes. All Practice Changes went into effect August 17, 2024.
For ease, the key points affecting YOU as a HOME BUYER or HOME SELLER are listed below:
If you are a HOME BUYER
You will sign a written agreement with your Agent BEFORE touring a home. The agreement must include four components:
1) The agreement must be a specific and conspicuous disclosure of the amount or rate of compensation.
2) Compensation must be objective, and not open-ended.
3) A term must state the Agent is prohibited from receiving compensation for Broker Services exceeding
the amount in the agreement.
4) A conspicuous statement includes that Broker Fees and compensation are fully negotiable.
Written agreements also apply to in-person and virtual home tours.
A Seller may agree to offer compensation to your Agent, but compensation CANNOT be shared on a Multiple Listing Service.
A written agreement is not required if you are speaking to an Agent at an open house, or if you choose to not be represented by an Agent.
A Buyer may accept concessions from the Seller, such as an offer to pay closing costs, and concessions can be offered on the Multiple Listing Services.
If you are a HOME SELLER
You can choose to offer compensation to Buyer Brokers. You may consider doing so to market or to make your listing more attractive to Buyers.
Your Agent must conspicuously disclose to you and obtain your approval for any payment or offer of payment to another Buyer Broker.
This disclosure must be made to you in writing, in advance of any payment or agreement to pay another Buyer Broker.
The amount or rate of such payment must be specified.
Compensation cannot be included on an Multiple Listing Service listing.
Your Agent can advertise your listing via off-Multiple Listing Service platforms, such as Social Media, Flyers and Websites.
You can offer Buyer concessions on Multiple Listing Services, such as those for Buyer closing costs.
What did not change?
Agents who are REALTORS are here to help you navigate the process of selling your home. They are ethically obligated to work in your best interest. Compensation for your Agent remains fully negotiable. Your REALTOR Agent must abide by a REALTOR Code of Ethics and have clear and transparent conversations about compensation.
You have choices. Work with your Agent to understand the full range of these choices when Buying or Selling, and which choices will help you make the best possible decision for your needs.
(The above information was collected from FACTS.REALTOR, along with other NAR Settlement Articles.)
Should you have any questions, please feel free to contact me at 404-202-3501, or email me at terribraswell@remax.net. I will be happy to help.
Terri Braswell
Associate Broker/Owner
RE/MAX HALL of FAME
RE/MAX Lifetime Achievement Award
ABR, ASR, CDPE, CRS, GRI, RSPS, SRES
Accredited Buyers Representative
Accredited Sellers Representative
Certified Distressed Property Expert
Council of Residential Specialists
Graduate REALTOR Institute
Resort & Second Property Specialist
Seniors Real Estate Specialist
REALTOR of the Year 2009, 2015
Crystal Phoenix Member Million Dollar Club Award 1999-2024
Chairperson Walton County Chamber of Commerce 2016