The National Association of Realtors® (NAR) has issued a final reminder to all members, real estate professionals, and consumers regarding the significant practice changes that will take effect on August 17, 2024. These changes stem from NAR’s Proposed Settlement Agreement, which seeks to resolve claims brought on behalf of home sellers related to broker commissions.
As NCJAR members, it is crucial to be aware of these changes and ensure compliance by the deadline.
Key Changes to Take Effect on August 17, 2024
-
Prohibition of Offers of Compensation on MLSs:
- Effective August 17, 2024, REALTOR®-owned MLSs will no longer permit offers of compensation to be displayed. While this practice is being phased out on MLSs, consumers still have the option to negotiate compensation off-MLS through direct consultation with their real estate professionals.
-
Requirement for Written Buyer Agreements:
- Agents representing buyers must now enter into a written buyer agreement before a buyer can tour a home. This change emphasizes the importance of clear communication and agreement between agents and buyers. However, it does not mandate the type of agency relationship or specific terms for the agreement.
What This Means for REALTOR® MLSs
To remain in compliance with NAR policy, REALTOR® MLSs (those owned exclusively by one or more REALTOR® Associations) must implement these changes by the August 17, 2024 deadline. Failure to do so could result in non-compliance with NAR regulations, which may have significant implications for MLS operations.
Settlement Class Notification: What You Need to Know
August 17, 2024, also marks an important date for members of the “Settlement Class.” This includes home sellers who sold a home on an MLS in the U.S. during specific date ranges and paid a commission to a real estate brokerage. These individuals will begin receiving notifications—known as class notices—about NAR’s proposed settlement of the Sitzer-Burnett case. The class notice will outline their rights, options, and deadlines under the proposed settlement.
For REALTORS®, it is important to understand what class notice entails and how it may impact your clients. NAR has provided a video resource to help REALTORS® navigate these changes.
Additional Resources and Guidance
For the most up-to-date information on the settlement and practice changes, members are encouraged to visit facts.realtor. If consumers have questions about the class notice or the eligibility process, they should visit the settlement website or contact the settlement administrator at 888-995-0207 for further assistance.
