DOJ, NAR Commission Payment Changes Take Effect August Seventeenth

The National Association of Realtors is busy now reminding its 1.5 million NAR members, real estate professionals, and consumers that on August 17, important practice changes resulting from NAR's DOJ Settlement Agreement, addressing claims related to broker commissions brought on behalf of home sellers, will be implemented nationwide.

NAR advises all Multiple Listing Services (MLSs) to adopt these practice changes by August 17, 2024. Realtor MLSs (those exclusively owned by one or more Realtor Associations) must implement the changes by this date to stay in compliance with NAR policy.

As part of NAR's settlement with the DOJ, the following changes will take effect August 17, 2024:

• Offers of compensation on MLSs will be prohibited. While MLSs will no longer allow offers of compensation, consumers can still negotiate these terms off-MLS in consultation with real estate professionals. Offers of compensation play a crucial role in making homeownership and professional representation more accessible, particularly for first-time buyers, enhancing homeownership opportunities for historically underserved groups, and benefiting sellers by expanding the potential buyer pool and ensuring they receive the best possible offer for their property.
• Buyer agents must enter into a written agreement before home tours. Although the practice changes require a written buyer agreement before touring a home, they do not mandate an agency agreement or dictate the nature of the relationship. NAR encourages all members to address necessary form changes and begin educating real estate professionals and consumers about the revised forms as soon as possible, ahead of the August 17 deadline. While NAR policy does not dictate the terms of buyer agreements, the association has provided resources to assist with implementing the settlement terms, including tips on clarity, emphasizing consumer choice, and a "Written Buyer Agreements 101" guide.

---

Related News Stories

Dubai, Palm Beach and Miami Lead World's Super Luxury Home Sales

Florida, Texas Condo Supply is Piling Up as Sales Slow

U.S. Office Landlords Tenant Concessions Decline for First Time in 4 Years

Affordability and U.S. Election Stalling U.S. Consumers Home Buying Decisions

World Property Markets, World Property Media to Commence Large Funding Rounds

Seattle, Orlando and New York Top Labor Day Destinations in 2024