On March 15, 2024, NAR announced a settlement to resolve claims arising from home sellers related to broker commissions. Under the terms of the agreement, NAR would pay $418 million over approximately four years.
In settling these lawsuits, NAR has agreed to exclude information relating to compensation within the multiple listing service. In addition, the settlement requires MLS participants working with buyers to have representation agreements in place. The settlement preserves the choices consumers have regarding real estate services and compensation.
According to NAR, this settlement would mean the end of lawsuits with these types of claims filed across the nation if approved by the courts. In its press release, NAR stated, “Two critical achievements of this resolution are the release of most NAR members and many industry stakeholders from liability in these matters and the fact that cooperative compensation remains a choice for consumers when buying or selling a home. NAR also secured in the agreement a mechanism for nearly all brokerage entities that had a residential transaction volume in 2022 that exceeded $2 billion and MLSs not wholly owned by REALTOR® associations to obtain releases efficiently if they choose to use it.”
Texas REALTORS is actively engaged in determining how this will affect those named in lawsuits filed in Texas. We are hopeful that this settlement will mark the end of what otherwise may have stretched into years-long litigation. We will keep you updated as new information becomes available. For details about the NAR settlement, including FAQs, visit competition.realtor.
For more details about the NAR settlement, visit competition.realtor.