5 Important Agent Takeaways From the NAR Lawsuit Settlement
The settlement of the Sitzer-Burnett lawsuit by the National Association of Realtors® (NAR) brings significant changes to the real estate landscape. Understanding these changes is crucial for agents to adapt effectively. Here are five key points that agents need to be aware of:
1. MLS Cannot Display Commission Offers
One of the most impactful changes is that MLS platforms will no longer display commission offers. Key details include:
Listing agents are not required to offer compensation to buyer agents, although they can still choose to do so.
MLSs must remove fields related to compensation information, preventing any commission offers from being included in listings.
Participation in MLS membership will no longer hinge on offering compensation to buyer brokers.
Agents will need to negotiate compensation off the MLS, which could change the dynamics of how commissions are discussed with clients.
2. Written Agreements Required Before Home Tours
Agents must now enter into a written agreement with buyers before touring any properties. While this agreement doesn’t have to be exclusive, it clarifies the agent's role and services, ensuring both parties understand expectations regarding compensation and service.
3. Compensation Disclosure Must Be Clear
The settlement mandates that agents disclose their compensation clearly in any written agreement. Vague language, such as “whatever the seller is offering,” is no longer acceptable. This change is aimed at preventing misunderstandings and fostering transparency between agents and clients.
4. Agents Must Communicate That Commissions Are Negotiable
Agents are now required to inform clients that their commissions are negotiable and not fixed by law. This information should be presented clearly in written agreements, empowering clients to feel confident in negotiating terms.
5. Restrictions on Filtering Listings Based on Commission
Agents cannot filter or restrict listings based on the compensation offered to buyer agents. This rule ensures that all listings are considered fairly, regardless of the commission structure, fostering a more equitable market environment.
The NAR settlement introduces critical changes that will reshape how real estate agents operate. By understanding and adapting to these new policies, agents can continue to provide value to their clients while navigating this evolving landscape. Staying informed and proactive will be essential for long-term success in the industry.
