The National Association of REALTORS® (NAR) announced a landmark settlement agreement in Mid-March 2024 that would resolve litigation brought on behalf of home sellers related to broker commissions.
Home sellers maintained that NAR’s long-established rules on broker commissions resulted in excessive fees. NAR has agreed to pay $418 million in damages and eliminate its rules on commissions, resulting in the end of the standard 6% commission for U.S. real estate agents.
The settlement prohibits offers of compensation on multiple listing services (MLS) and requires MLS participants working with buyers to enter into written agreements with their buyers. Previously, a buyer’s agent could look at the MLS and immediately know what compensation was being offered by the seller.
THESE REVISED POLICIES WILL GO INTO EFFECT ON AUGUST 17, 2024
The aftermath of the groundbreaking decision is expected to have profound implications on the residential real estate industry and how it conducts business. While it’s a residential-based settlement, the looming question among commercial brokers and commercial industry participants is whether it could have an impact on commercial real estate broker fees…
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