Court Approval Pending for NAR’s Nationwide Settlement Impacting Commissions and MLS Policies
On March 15, 2024, the National Association of REALTORS® (NAR) announced a nationwide settlement to address the lawsuits brought by home sellers across several states regarding real estate commissions. The settlement, which includes the Houston Association of REALTORS® (HAR) along with other state and local associations, requires NAR to pay $418 million in damages and to implement significant changes in its policies.
A critical component of the settlement involves the repeal of the commission-sharing policy that had been in place. Under the new rules, brokers and agents will now be required to negotiate compensation directly with their clients, rather than relying on preset commission structures in the Multiple Listing Service (MLS). This change also underscores that there is no standard 6% commission rate, as compensation has always been negotiable between agents and consumers.
Additionally, the settlement will mandate that agents enter into written buyer agreements with their clients before touring homes. This policy aims to ensure transparency and formalize the relationship between buyers and their agents.
The Houston Association of REALTORS® (HAR) operates under NAR rules and is part of a broader network that includes the Texas Association of REALTORS® and approximately 1,800 local associations nationwide. HAR’s MLS system is unique in that it allows both REALTORS® and non-REALTORS® to access its database of current property listings and historical sales information.
The settlement agreement is pending court approval, which is expected to take several months. If approved, these changes will significantly impact the way real estate transactions are conducted nationwide.
As always, rather you are Buying or Selling or needing to borrow a cup of sugar or just need to ask some real estate questions “I’m Your Next Door Agent.” Give me a call. I will be glad to help.
For more insights on Huntsville’s real estate trends or to connect with a trusted real estate professional, visit Terri Coleman, Your Next Door Agent, at www.myrealtorterri.com or contact her directly at (936) 581-4434. Specializing in North Houston, including Spring, The Woodlands, Conroe, Lake Conroe, and Willis, Terri is committed to serving and guiding clients through their real estate journeys.
This article is part of our Hello Huntsville East Texas Real Estate Experts series. The information provided here is intended for informational purposes only and is not liable to Hello Huntsville, Terri Coleman, or any other associated parties. It is recommended that you consult with your real estate agent or legal professional for advice specific to your situation.
