NAR Settlement Resources

At Greater Nashville REALTORS®, we are dedicated to providing you with timely and accurate information regarding the implications of this proposal for your business.

• For up-to-date information from the National Association of REALTORS® please visit www.Facts.realtor. 
• Realtracs Settlement Webinar, which can be accessed by Realtracs users by logging into their Realtracs account. 
• Speak with your broker.
• Invite CEO Jarron Springer and President Kevin Wilson to speak at your office, please email sara@greaternashvillerealtors.org. 

Understanding Real Estate Practice Changes and the Impact on the Consumer

August 8, 2024 - Note from Realtracs

The deadline to remove compensation from the MLS is nearing. We want to make sure you are prepared to navigate impending practice changes.

1. Compensation is not allowed in the MLS. The Buyer Broker Compensation Field will be removed from the Realtracs MLS on August 17. If you have documents that discuss compensation, they must be removed from Realtracs. Additionally, if you mention compensation in Private Remarks, you must also remove those comments. Realtracs will handle anything else regarding the removal of compensation from the system.
2. Use of Buyer Agreements are required. Per the NAR settlement, when working with a buyer, agents must enter into a written agreement with the buyer prior to touring a home. The Realtracs Showing Modal has been updated to reflect this requirement and will ask you to confirm your understanding of using buyer agreements. Learn more HERE.
3. Agree to new Participant and User Agreements. On August 19, you will be prompted to agree to the new Participant and User Agreements before gaining system access. These agreements reference the recently modified Realtracs Rules. You can view and read the updates HERE. Please note the updates to our fee schedule and fee policies. Most importantly, those who do not comply with the removal of compensation will incur stringent ramifications.

As always, we are here to support you. If you have questions about any of the items included here, contact our Support Team. They can be reached Monday through Friday (7 a.m. - 6 p.m. CST) and on Saturdays (9 a.m. - 4 p.m. CST) by calling (615) 385-0777, via email at support@realtracs.com, or via chat.

August 7, 2024 - Note from NAR

Ahead of the August 17 implementation of NAR's practice changes, we wanted to provide a few reminders of actions that are required to obtain a release of liability and protect your organization from claims related to broker commissions:

• We recommend all MLSs implement practice changes by August 17. REALTOR® MLSs (those owned exclusively by one or more REALTOR® Member Boards) must implement the changes by this date to remain in compliance with NAR policy.
• Offers of compensation are prohibited on MLSs. Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Offers of compensation help make homeownership and the benefits of professional representation more accessible to buyers, including first-time homebuyers, increase homeownership opportunities for historically underserved groups, and benefit sellers by expanding the potential buyer pool.
• Agents working with a buyer must enter into a written agreement before touring a home. Ahead of August 17, NAR encourages all members to address form changes and prepare to educate real estate professionals and consumers about revised forms. NAR policy does not dictate terms of buyer agreements, including the type of relationship – e.g., agency, non-agency, exclusive, or non-exclusive – or the length of the term. NAR has created resources to assist with implementation of the settlement terms-such as tips on clarity and emphasizing consumer choice-including our "Written Buyer Agreements 101" resource, available here.

The practice changes are detailed here, and clarifying information is available in our FAQ on facts.realtor.

We also want to make you aware of several recent updates to facts.realtor, including:

• Information for MLS Participants who list properties to MLSs that did not opt-in to the settlement (#38)
• An addition to the 'Written Listing Agreements' and 'Written Buyer Agreement' sections regarding which pre-closing form disclosures are required (#57 and #79, respectively)
• Clarification on the requirement for written buyer agreements for all subscribers to MLSs that have opted into the settlement (#16)
• An addition to the 'Offers of Compensation' section regarding how the REALTOR® Code of Ethics addresses off-MLS offers of compensation (#48)
• Additional detail explaining the parameters of allowable links to brokerage websites that are on an MLS (#45)
• A new question on procuring cause in arbitration (#47)
• Updated information on amended agreements (#74)
• Updated information on the appraisal process (#98)

NAR has updated how we host settlement-related content on our website. Facts.realtor is now the sole online home of all NAR settlement related content. Competition.realtor and realestatecommissionfacts.com have both been retired, and its contents have been migrated to facts.realtor.

August 5, 2024 - Note from Tennessee REALTORS®

The Tennessee REALTORS® Forms Committee has been working diligently alongside the Tennessee REALTORS® legal counsel to get forms updated to comply with the NAR settlement agreement. These forms will be available for use in Transaction Desk on August 17.

The information can be found on our Forms on the Fly page; you must be logged into the website to access this page and information.

2024 Forms Changes Video

June 25, 2024 - Educational Resource

 

June 4, 2024

• New Guidance for Written Buyer Agreements: NAR has developed a new guide on written buyer agreements to support members as they prepare for and adapt to the upcoming practice changes following NAR's settlement agreement. Beginning Aug. 17, a buyer representative working with a buyer will be required to enter into a written agreement with the buyer prior to touring a home, including both in-person and live virtual tours. The guide for developing these agreements is available at facts.realtor and a PDF version can be downloaded here.
• Window to the Law: Settlement Facts Video: NAR has created a question and answer video series about the settlement, new practice changes and MLS rules.

Details and Implementation Date for Practice Changes

NAR provided key details of the required practice changes under the Settlement Agreement. These practice changes result in revisions to the MLS policy handbook which are summarized below. The revised policies will go into effect on August 17, 2024. A more detailed explanation of each practice change is available on facts.realtor. 

The settlement requires NAR to implement the practice changes no later than the date of class notice. Through the preliminary settlement approval process, we now know the earliest date of class notice is August 17, 2024. We are announcing these important changes now to ensure members and MLSs have ample time to prepare.

MLSs that have opted into the settlement agreement have until September 16, 2024 to implement the necessary policy changes and to be considered released parties, as provided in the relevant appendices they executed. However, NAR’s accelerated rule change process gives MLSs three months to adapt. In accordance with mandatory NAR policy, REALTOR® MLSs must implement the practice changes by August 17, 2024. NAR recommends all opting-in MLSs implement the practice changes by this date.

 Over the coming days, NAR will discuss these changes in more detail. In the interim, check out NAR's FAQ, which has been updated to reflect the effective date and provide additional details on implementation. We are committed to working together to navigate these adjustments and providing as much guidance to our members as possible. As further details emerge, additional materials will be shared and posted to facts.realtor.

Pursuant to the requirements of the proposed Settlement Agreement, the MLS policies and model MLS governing documents were reviewed and updated with the key changes below: 

1. Eliminate and prohibit any requirement of offers of compensation in the MLS between listing brokers or sellers to buyer brokers or other buyer representatives.
2. Retain, and define, "cooperation” for MLS Participation.
3. Eliminate and prohibit MLS Participants, Subscribers, and sellers from making any offers of compensation in the MLS to buyer brokers or other buyer representatives.
4. Require the MLS to eliminate all broker compensation fields and compensation information in the MLS.
5. Require the MLS to not create, facilitate, or support any non-MLS mechanism (including by providing listing information to an internet aggregator’s website for such purpose) for Participants, Subscribers, or sellers to make offers of compensation to buyer brokers or other buyer representatives. 
6. Prohibit the use of MLS data or data feeds to directly or indirectly establish or maintain a platform of offers of compensation from multiple brokers or other buyer representatives.  Such use must result with the MLS terminating the Participant’s access to any MLS data and data feeds.
7. Reinforce that MLS Participants and Subscribers must not, and MLSs must not enable the ability to filter out or restrict MLS listings that are communicated to customers or clients based on the existence or level of compensation offered to the cooperating broker or the name of a brokerage or agent.
8. Require compensation disclosures to sellers, and prospective sellers and buyers.  
9. Require MLS Participants working with a buyer to enter into a written agreement with the buyer prior to touring a property.  

The policy changes were reviewed by the MLS Emerging Issues and Technology Advisory Board and adopted by the NAR Leadership Team and will be effective on August 17.

Written Buyer Agreements Q&A

The following Q&A includes additional information and clarity about written buyer agreements.

1. The practice change requiring written agreements with buyers is triggered by two conditions: it only applies to MLS participants “working with” buyers and is triggered by “touring a home.” What does it mean to be “working with” a buyer?
   1. The “working with” language is intended to distinguish MLS participants who provide brokerage services to a buyer — such as identifying potential properties, arranging for the buyer to tour a property, performing or facilitating negotiations on behalf of the buyer, presenting offers by the buyer, or other services for the buyer —from MLS participants who simply market their services or just talk to a buyer — like at an open house or by providing an unrepresented buyer access to a house they have listed.
   2. If the MLS participant is working only as an agent or subagent of the seller, then the participant is not “working with the buyer.” In that scenario, an agreement is not required because the participant is performing work for the seller and not the buyer.
   3.   Authorized dual agents, on the other hand, work with the buyer (and the seller).
2. How will state laws affect the implementation of the practice change requiring written agreements with buyers?
   1. Written buyer agreements will be required of all MLS participants working with buyers prior to touring a home, unless state law requires a written buyer agreement earlier in time.
3. What does it mean to tour a home?
   1. Written buyer agreements are required before a buyer tours a home for sale listed on the MLS.
   2. Touring a home means when the buyer and/or the MLS participant, or other agent, at the direction of the MLS participant working with the buyer, enter(s) the house. This includes when the MLS participant or other agent, at the direction of the MLS participant, working with the buyer enters the home to provide a live, virtual tour to a buyer not physically present.
   3. A "home" means a residential property consisting of not less than one or more than four residential dwelling units.
4. Does the requirement for a written agreement with buyers mean that MLS participants and buyers must enter into a written agency agreement?
   1. No. MLS participants and buyers will still be able to enter into any type of professional relationship permitted by state law.
   2. NAR policy does not dictate:
      1. What type of relationship the professional has with the potential buyer (e.g., agency, non-agency, subagency, transactional, customer).
      2. The term of the agreement (e.g., one day, one month, one house, one zip code).
      3. The services to be provided (e.g., ministerial acts, a certain number of showings, negotiations, presenting offers).
      4. The compensation charged (e.g., $0, X flat fee, X percent, X hourly rate).
5. If an MLS participant hosts an open house or provides access to a property, on behalf of the seller only, to an unrepresented buyer, will they be required to enter into a written agreement with those buyers touring the home?
   1. No. The new rule will cover every type of relationship where an MLS participant is working with a buyer.
6. Are written buyer agreements required when listing agents talk with a buyer on behalf of a seller only or as subagents of the seller?
   1. No. If the MLS participant is working only as an agent or subagent of the seller, then the participant is not working for the buyer. In that scenario, an agreement is not required because the participant is performing work for the seller and not the buyer.
7. Are written buyer agreements required when MLS participants perform ministerial acts?
   1. Yes. The obligation is triggered once the MLS participant is working with that buyer and has taken them to tour a home, regardless of what other acts the MLS participant performs.
   2. But an MLS participant performing only ministerial acts — without the expectation of being paid for those acts and who has not taken the buyer to tour a home — is not working for the buyer.
8. Are written buyer agreements required in a dual agency scenario, when a single agent works both for the seller and for the buyer?
   1.  Yes. If an MLS participant is working as an agent for a buyer, a written agreement is required.
9. Are written buyer agreements required in a designated agency scenario, when a single broker works both for the seller and for the buyer, and designates an agent to represent the buyer?
   1.     Yes. If an MLS participant is working as an agent for a buyer, a written agreement is required.
10. MLS participants may not receive compensation for services from any source that exceeds the amount or rate agreed to in the buyer agreement. Does this mean that brokerages can only have one agreement with the buyer?
    1. No. NAR policy does not dictate:
       1. What type of relationship the professional has with the potential buyer (e.g., agency, non-agency, subagency, transactional, customer).
       2. The term of the agreement (e.g., one day, one month, one house, one zip code).
       3. The services to be provided (e.g., ministerial acts, a certain number of showings, negotiations, presenting offers).
       4. The compensation charged (e.g., $0, X flat fee, X percent, X hourly rate).
    2. Compensation continues to be negotiable and should always be negotiated between MLS participants and the buyers with whom they work.
11. In the buyer agreement, can buyers and buyer brokers agree to a range of compensation?
    1. NAR policy will not dictate the compensation agreed between buyers and buyer brokers (e.g., $0, X flat fee, X percent, X hourly rate).
    2. Under the settlement, any compensation agreed to must be objectively ascertainable and not open-ended. For example, the range cannot be “buyer broker compensation shall be whatever amount the seller is offering to the buyer.”
12. Should active buyer agreements entered into before the MLS policy change be amended to make sure any compensation is not open-ended and is objectively ascertainable?
    1. Yes. MLS participants working with a buyer after the effective date of the policy should take steps to ensure that the buyer has agreed to the necessary terms required by the settlement agreement.
13. Should active buyer agreements entered into before the MLS policy change be amended to remove any provision that authorizes the buyer broker to keep any offers of compensation exceeding the amount of compensation agreed with the buyer?
    1. Yes. MLS participants working with a buyer after the effective date of the policy should take steps to ensure that the buyer has agreed to the necessary terms required by the settlement agreement.
14. Should active listing or buyer agreements entered into before the MLS policy change be amended to include a conspicuous disclosure that compensation is not set by law and is fully negotiable?
    1. MLS participants must make this disclosure, but active agreements do not need to be amended to accomplish this. MLS participants can do a separate disclosure to satisfy the requirement.
15. Can buyers and buyer brokers rely on an offer of compensation that was on the MLS prior to the effective date of the MLS policy changes?
    1. If the sales contract is signed before the MLS policy change, the buyer broker should be able to rely upon the offer of compensation even if closing occurs after the date of the policy change.
    2. But if the sales contract is not signed before the date the participant’s MLS implements the policy changes, the offer on the MLS will not be valid and buyers and buyer brokers may wish to protect themselves in writing with the listing broker or seller through a broker agreement or by including the offer of compensation in the sales contract.
16. Does the settlement agreement’s requirement of “objectively ascertainable” and “not open-ended” apply to listing agreements or the compensation sellers pay listing brokers?
    1. No. Unlike the settlement agreement’s requirements that compensation in buyer agreements be objectively ascertainable and not open-ended, listing agreements can be structured however the seller and listing broker agree, so long as the listing agreement complies with the law, pre-existing MLS policy, and “specifies the amount or rate of any payment” from the seller to the listing broker.
17. Should active listing agreements entered into before the MLS policy change be amended to address the settlement agreement’s prohibition on offers of compensation being communicated on the MLS?
    1. If the listing agreement instructs the listing broker to make an offer of compensation without reference to the MLS, no change to the listing agreement is needed, as the listing broker can comply with that instruction without violating the MLS policy change.
    2. But if the listing agreement specifies that offers of compensation be made “on the MLS,” then the listing broker should work with the seller to amend the listing agreement before the MLS policy change is implemented, to make it clear the listing broker will not make an offer of compensation on the MLS and will not be violating the listing agreement by failing to make an offer of compensation on the MLS.

Preliminary Approval of Settlement Agreement Granted

We shared with you over the weekend that the Plaintiffs’ counsel filed a Motion for Preliminary Approval of this agreement with the federal court in the Western District of Missouri.

Today, Judge Bough granted that motion which means that as of today, the settlement agreement is preliminarily approved. Settlement class members are now enjoined from filing complaints or prosecuting any claims based on the type of conduct at issue in Sitzer-Burnett and the other settled Actions on behalf of home sellers related to broker commissions against NAR or other parties that are released under the settlement.

Two important reminders:

• Individual NAR members and their brokerages with 2022 total transaction volume for residential home sales below $2 billion do not need to take any action to be covered by the settlement. 

• The following entities that choose to be covered by the settlement must execute the relevant affidavit by June 18, 2024:
  • REALTOR® MLSs – which are MLSs wholly owned by REALTOR® associations (see Appendix B)
  • Brokerages with 2022 total transaction volume for residential home sales in excess of $2 billion (see Appendix C)
  • Non-REALTOR® MLSs – which are MLSs that are not wholly owned by REALTOR® associations (see Appendix D)

• Please see the FAQs below for more information and contact Mike Rohde at mrohde@nar.realtor with any questions about completing an opt-in agreement.

The settlement is still subject to final court approval, and plaintiffs have requested a hearing on final approval of the settlement to be held on November 26, 2024. For a more comprehensive view of what’s ahead, please see an estimated timeline here.

1. Does this mean that the settlement is now fully approved?
   
   1. No. Today’s order granted preliminary approval of the settlement.
   2. The settlement is still subject to final court approval, and we expect a motion for final approval to be filed at the end of this year.
2. What does preliminary approval mean for pending or potential copycat cases?
   1. Class members are now temporarily enjoined from filing, commencing, prosecuting, intervening in, or pursuing as a plaintiff or class member any claims against NAR or any released party. This prohibition applies to any and all claims, regardless of the cause of action, arising from or relating to conduct that was alleged or could have been alleged in the Sitzer-Burnett and the other settled Actions based on any or all of the same factual predicates for the claims alleged in those Actions.
   2. NAR will move to have litigation about the MLS cooperative compensation Model Rule stayed, or paused, as to NAR pending the settlement approval process.
3. Do individual NAR members need to take any action in order be covered by the settlement agreement?
   1. No. If you are an NAR member as of the date of the class notice, you are covered by the settlement unless:
      1. You are an employee of: At World Properties, LLC; Douglas Elliman, Inc.; Douglas Elliman Realty, LLC; eXp Realty, LLC; eXp World Holdings, Inc.; Hanna Holdings, Inc.; HomeSmart International, LLC; Howard Hanna Real Estate Services; Realty ONE Group, Inc.; Redfin Corporation; United Real Estate; or Weichert, Realtors® OR
      2. You are associated with HomeServices of America or one of its affiliates.
   2. The date of the class notice has not been set, but it will be sent no earlier than August 17, 2024.
4. Which entities need to take action in order to be covered by the settlement agreement?
   1. All REALTOR® MLSs, brokerages with 2022 total transaction volume for residential home sales in excess of $2 billion, and non-REALTOR® MLSs who want to be covered by the settlement must take action. The deadline to execute the relevant appendices to be released under the settlement is June 18, 2024.
      1. REALTOR® MLSs: In order to be released under the settlement agreement, all MLSs wholly owned by REALTOR® associations must agree to and execute Appendix B - REALTOR® MLS “Opt In” Agreement and return it to the email addresses realtorsoptin@jndla.com, realtorsoptin@cohenmilstein.com, and nargovernance@nar.realtor.
      2. Brokerages with 2022 total transaction volume for residential home sales in excess of $2 billion: In order to be released under the settlement, eligible brokerages must agree to and execute Appendix C – Brokerage “Opt In” Agreement and return it — along with the required documentation and indication noted in paragraph 20 of Appendix C — to the email addresses realtorsoptin@jndla.com, realtorsoptin@cohenmilstein.com, and nargovernance@nar.realtor.
      3. Non-REALTOR® MLSs: In order to be released under the settlement, MLSs not wholly owned by REALTOR® associations must agree to and execute Appendix D – Non-REALTOR® MLS “Opt In” Agreement and return it — along with the required indication noted in paragraph 20 of Appendix D — to the email addresses realtorsoptin@jndla.com, realtorsoptin@cohenmilstein.com, and nargovernance@nar.realtor.
      4. For questions about completing an opt-in agreement, please contact Mike Rohde at mrohde@nar.realtor. 
5. What happens next?
   1. The settlement is subject to final court approval, and we expect a motion for final approval of the settlement to be filed at the end of this year.
   2. The practice changes set forth in the settlement agreement are slated to take effect in late July of this year, and class notice will take place no earlier than August 17, 2024. 

April 19, 2024 - Q&A w/NAR Chief Legal Officer, Katie Johnson

On April 19, 2024, Plaintiffs' counsel filed a Motion for Preliminary Approval of the proposed settlement agreement with the federal court in the Western District of Missouri. Importantly, this filing initiates the 60-day time period during which all REALTOR® MLSs, brokerages with 2022 total transaction volume for residential home sales in excess of $2 billion, and non-REALTOR® MLSs who want to be covered by the settlement must take action. The deadline for these actions is June 18, 2024.

• REALTOR® MLSs: In order to be released under the settlement agreement, all MLSs wholly owned by REALTOR® associations must agree to and execute Appendix B - REALTOR® MLS “Opt In” Agreement and return it to the email addresses realtorsoptin@jndla.com, realtorsoptin@cohenmilstein.com, and nargovernance@nar.realtor within 60 days.

• Brokerages with 2022 total transaction volume for residential home sales in excess of $2 billion: In order to be released under the settlement, eligible brokerages must agree to and execute Appendix C – Brokerage “Opt In” Agreement and return it — along with the required documentation and indication noted in paragraph 20 of Appendix C — to the email addresses realtorsoptin@jndla.com, realtorsoptin@cohenmilstein.com, and nargovernance@nar.realtor within 60 days.

• Non-REALTOR® MLSs: In order to be released under the settlement, MLSs not wholly owned by REALTOR® associations must agree to and execute Appendix D – Non-REALTOR® MLS “Opt In” Agreement and return it — along with the required indication noted in paragraph 20 of Appendix D — to the email addresses realtorsoptin@jndla.com, realtorsoptin@cohenmilstein.com, and nargovernance@nar.realtor within 60 days.

• For questions about completing an opt-in agreement, please contact Mike Rohde at mrohde@nar.realtor.

Scrivener’s errors were corrected in the filed version of the settlement agreement, but no substantive changes were made. The corrected version is available on facts.realtor. Also available on facts.realtor, are fillable versions of the appendices with instructions for those entities that desire to opt-in.

We expect that the Court will rule on the motion for preliminary approval soon. The practice changes set forth in the settlement agreement are slated to take effect in late July of this year, and class notice will take place no earlier than August 17, 2024. The settlement is subject to final Court approval, and plaintiffs have requested a hearing on final approval of the settlement to be held on November 22, 2024. We will let you know when that date is confirmed. For a more comprehensive view of what’s ahead, please see an estimated timeline here. 

We will continue to keep you informed as the settlement process progresses and the time for implementation of the practice changes approaches. As always, if you have any questions, please don’t hesitate to reach out to me or my team.

Katie Johnson, NAR Chief Legal Officer

Q&A w/ NAR Chief Legal Officer Katie Johnson

• What is this motion about?
  • Plaintiffs’ counsel filed a Motion for Preliminary Approval of the NAR settlement agreement with the federal court in the Western District of Missouri.

• What is NAR’s position on the arguments in the motion?
  • The motion for preliminary approval is the plaintiffs’ position. While we disagree with some of plaintiffs’ statements about NAR and real estate professionals, we agree that the settlement is fair, reasonable, and should be approved by the Court.

• Are there any substantive changes in the settlement agreement that was filed in the motion for preliminary approval?
  • The settlement agreement was edited to correct scrivener’s errors in the original version, but no substantive changes have been made to the version filed with the motion for preliminary approval.

• Does this mean that the settlement is now fully approved?
  • Today’s motion seeks preliminary approval of the settlement.
  • We expect that the Court will rule on the motion for preliminary approval soon.
  • The settlement is still subject to final Court approval, and we expect a motion for final approval to be filed at the end of this year.

• Do I need to take action now?
  • This filing initiates the 60-day time period during which all REALTOR® MLSs, brokerages with 2022 total transaction volume for residential home sales in excess of $2 billion, and non-REALTOR® MLSs who want to be covered by the settlement must take action. The deadline to execute the relevant appendices to be released under the settlement is June 18, 2024.
  • If you are not part of the above groups, then you do not need to take action based on today’s motion.

• What happens next?
  • We expect that the Court will rule on the motion for preliminary approval soon. The settlement is subject to final Court approval, and we expect a motion for final approval of the settlement to be filed at the end of this year.
  • The practice changes set forth in the settlement agreement are slated to take effect in late July of this year, and class notice will take place no earlier than August 17, 2024.

April 15, 2024 - Fannie Mae, Freddie Mac Update

Fannie Mae, Freddie Mac will not count buyer's agents commissions as part of allowable interested party contributions.

NAR Settlement Webinar

Thursday, March 28, from 10 to 11 AM

Speaker:

• Ed Zorn, VP & General Counsel at the California Regional MLS

Hosts: 

• Kevin Wilson, Greater Nashville REALTORS® President
• Tara DeSelms, Greater Nashville REALTORS® President-Elect

The recent announcement of NAR's settlement proposal has taken the industry by surprise, and we understand that many of you have questions. At Greater Nashville REALTORS®, we are dedicated to providing you with timely and accurate information regarding the implications of this proposal for your business.

To facilitate a deeper understanding of the situation, Greater Nashville REALTORS® President Kevin Wilson and President-Elect Tara DeSelms will host a one-hour virtual discussion on the recent NAR settlement. Joining them will be Ed Zorn, VP & General Counsel at the California Regional MLS, who will provide valuable insights into the settlement and its potential ramifications.

 

March 25, 2024

NAR President Kevin Sears and Chief Legal Officer Katie Johnson recorded a webinar on Friday, March 22, discussing the settlement agreement and what it means for both the association and its members. You can view that briefing here. Below is a message from Nykia Wright, Interim Chief Executive Officer of the National Association of REALTORS® 

We are committed to helping you and our members further understand and be able to communicate about the settlement. To that end, I encourage you to visit facts.realtor for the latest materials to support your conversations, including:

• The latest settlement FAQs
• FAQs focused on financing and interested party contributions
• Slides that cover the key terms of the settlement
• A timeline showing anticipated next steps in the process
• An overview of the scope of the release for NAR members

We are continuing to update facts.realtor with resources for our members and association leaders, and competition.realtor with resources for the public.

Lastly, as Kevin shared during the briefing, we are grateful for the support we have received from our members so far. We ask that you share any potential advocates that can speak on NAR’s behalf with our communications firm Brunswick Group at NARSurrogates@brunswickgroup.com.

March 21, 2024

Kevin Sears: Discussing Key Settlement Considerations and Ongoing Advocacy Efforts On the Road

March 18, 2024

Statement from Your Leadership Concerning NAR Settlement 

Greater Nashville REALTORS® Members,

We know the news of NAR’s settlement proposal this past Friday has taken the industry by surprise. The leadership here at your local association received the NAR settlement detail on Friday morning just as you did, and immediately began to determine how Greater Nashville REALTORS® can support our members, your clients and private property rights as we move forward.

It is important that we take steps to prepare now, while also recognizing this is a proposed settlement and is subject to court approval. This is likely to take a several months. Today, we will prepare for what we know and adjust as needed as the future comes.

It is important for you learn the facts and assess the future. There is an opportunity for the industry to thrive as these changes play out. Here are things you can focus on and control right now:

• Understand Buyer Representation Agreements. According to the proposed settlement, starting in July, a Buyer Representation Agreement must be signed prior to showing any property.
• As a listing agent, learn to effectively communicate how the buyer’s agent can be paid, how sellers can participate, and the potential impact to the seller.
• If you do not already, make buyer consultations a part of your business in the way that you have always had seller consultations. Have a solid presentation that defines your value and your fee.
• Mindset: Focus on the opportunity not the obstacle.  

Here is what Greater Nashville REALTORS® is doing for you:

INFORMATION

We have all the information we have received on our website. Our CEO Jarron Springer and President Kevin Wilson are also available to speak at your agent office meetings. Please reach out to jarron@greaternashvillerealtors.org to schedule time. NAR is regularly updating their site www.facts.realtor. You will find Fact Sheets, FAQs, and Settlement Agreement webinars there. You can find our NAR Settlement webinar from March 28 hosted by our leadership at the top of the page. You can find the Realtracs MLS NAR Settlement webinar from March 27 at realtracs.com

NEW FORMS

In this settlement, NAR agreed to require MLS participants working with buyers to enter into written buyer representation agreements. We will work with Tennessee REALTORS® to make sure members have access to the forms they may need based on the new buyer representation requirements. This change will likely go into effect in mid-July 2024. At this time, we do not have an exact timeline for changes to forms, but again this settlement is subject to court approval, so adjustments will relate to a final settlement.

REALTRACS MLS CHANGES

We will communicate with Realtracs MLS about the changes they will need to implement. NAR has agreed to put in place a new rule prohibiting offers of compensation on the MLS. Offers of compensation could continue to be an option a consumer can pursue off-MLS through negotiation and consultation with real estate professionals. Sellers could also offer buyer concessions on an MLS (for example—concessions for buyer closing costs). This change will likely go into effect in mid-July 2024. At this time, we do not have an exact timeline for changes to Realtracs, but again this settlement is subject to court approval, so adjustments will relate to a final settlement.

PROFESSIONAL DEVELOPMENT OPPORTUNITIES

We are considering how we can provide educational opportunities to help our members work through these changes. Negotiation skills will be more important than ever. We have a Being A Good Negotiator class already scheduled for August 14 and are looking at adding additional dates for that course in May and June. We are also considering how we can provide easy member access to NAR’s Real Estate Negotiation Expert certification. 

MEDIA

We are leaning on our media connections to open up opportunities to spread facts about REALTORS®, your value, and what this settlement means to consumers. President Kevin Wilson is interviewing this afternoon with News 2 locally as well with National Public Radio’s Chief Economics Correspondent Scott Horsley. We will continue to proactively deliver our industry truth. 

BREAKDOWN OF WHAT IT ALL MEANS

Ed Zorn, who provided our membership with an update about the lawsuits at our membership luncheon in November, recently provided a breakdown alongside NextHome CEO James Dwiggins about what this all means and you can view this HERE. This is well worth the time for you to understand more about the settlement and potential future. This information is not legal advice. It is only these individuals’ take on what they have read concerning the settlement.

WHAT'S NEXT

Again, this settlement is subject to court approval and that will likely take several months. There will be opportunities for us and we are already thinking of how we can serve you. This is new for everyone, but our leadership is committed to our members’ success. We will keep the information coming as it becomes available.

Kevin Wilson

President

Jarron Springer

CEO

 

March 15, 2024 

NAR Settlement Update

This morning, the National Association of REALTORS® reached a proposed settlement agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions. The agreement would resolve claims against NAR, over one million NAR members, all state/territorial and local REALTOR® associations, all association-owned Multiple Listing Services (MLSs), and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below. The settlement is subject to court approval. More details below.

1. Compensation offers moved off the MLS: NAR has agreed to put in place a new rule prohibiting offers of compensation on the MLS. Offers of compensation could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. And sellers can offer buyer concessions on an MLS (for example—concessions for buyer closing costs). This change will go into effect in mid-July 2024.
2. Written agreements for MLS participants acting for buyers: While NAR has been advocating for the use of written agreements for years, in this settlement we have agreed to require MLS participants working with buyers to enter into written representation agreements with their buyers. This change will go into effect in mid-July 2024. 

 We know you have questions related to this settlement. You can access NAR’s central resource for updates on this at www.facts.realtor. You will need to login with your NAR credentials to access the page. We have provided easy access to a video from NAR and the NAR FAQs and Factsheet with the buttons below.

We will keep you up to date with information and developments as we receive them.

Litigation Update Video

NAR Settlement Factsheet

NAR FAQs     

CHICAGO (March 15, 2024) –The National Association of REALTORS® (NAR) today announced an agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions. The agreement would resolve claims against NAR, over one million NAR members, all state/territorial and local REALTOR® associations, all association-owned MLSs, and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below.

The settlement, which is subject to court approval, makes clear that NAR continues to deny any wrongdoing in connection with the Multiple Listing Service (MLS) cooperative compensation model rule (MLS Model Rule) that was introduced in the 1990s in response to calls from consumer protection advocates for buyer representation. Under the terms of the agreement, NAR would pay $418 million over approximately four years.

“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers. It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals,” said Nykia Wright, Interim CEO of NAR.

Two critical achievements of this resolution are the release of most NAR members and many industry stakeholders from liability in these matters and the fact that cooperative compensation remains a choice for consumers when buying or selling a home. NAR also secured in the agreement a mechanism for nearly all brokerage entities that had a residential transaction volume in 2022 that exceeded $2 billion and MLSs not wholly owned by REALTOR® associations to obtain releases efficiently if they choose to use it.

NAR fought to include all members in the release and was able to ensure more than one million members are included. Despite NAR’s efforts, agents affiliated with HomeServices of America and its related companies—the last corporate defendant still litigating the Sitzer-Burnett case—are not released under the settlement, nor are employees of the remaining corporate defendants named in the cases covered by this settlement.

In addition to the financial payment, NAR has agreed to put in place a new MLS rule prohibiting offers of broker compensation on the MLS. This would mean that offers of broker compensation could not be communicated via the MLS, but they could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Offers of compensation help make professional representation more accessible, decrease costs for home buyers to secure these services, increase fair housing opportunities, and increase the potential buyer pool for sellers. They are also consistent with the real estate laws in the many states that expressly authorize them.

Further, NAR has agreed to enact a new rule that would require MLS participants working with buyers to enter into written agreements with their buyers. NAR continues, as it has done for years, to encourage its members to use buyer brokerage agreements that help consumers understand exactly what services and value will be provided, and for how much. These changes will go into effect in mid-July 2024.

“Ultimately, continuing to litigate would have hurt members and their small businesses,” said Ms. Wright. “While there could be no perfect outcome, this agreement is the best outcome we could achieve in the circumstances. It provides a path forward for our industry, which makes up nearly one fifth of the American economy, and NAR. For over a century, NAR has protected and advanced the right to real property ownership in this country, and we remain focused on delivering on that core mission.”

“NAR exists to serve our members and American consumers, and while the settlement comes at a significant cost, we believe the benefits it will provide to our industry are worth that cost,” said Kevin Sears, NAR President. “NAR is focused firmly on the future and on leading this industry forward. We are committed to innovation and defining the next steps that will allow us to continue providing unmatched value to members and American consumers. This will be a time of adjustment, but the fundamentals will remain: buyers and sellers will continue to have many choices when deciding to buy or sell a home, and NAR members will continue to use their skill, care, and diligence to protect the interests of their clients.” 

 

November 9, 2023 

WHAT THE Sitzer/BURNETT V. NAR, ET AL. LAWSUIT VERDICT MEANS FOR YOU

Recently, a Missouri jury reached a verdict in the Sitzer/Burnett v. NAR, et al. case. News of this large and sweeping class action lawsuit verdict, which held NAR and several brokerages liable in a Federal Missouri Court Room, has many asking valid questions about the future of the real estate industry and how compensation will work going forward. Let’s take a moment to get perspective on where the industry is and point out some industry provided resources.

NAR’s CEO Sets Record Straight on Commissions

National Association of REALTORS® Interim CEO Nykia Wright addresses false claims about commissions in real estate. Learn how NAR makes efficient, transparent, and accessible marketplaces possible, serving consumers and advancing homeownership.

Learn more at competition.realtor.

GREATER NASHVILLE REALTORS® FACING THE FUTURE OF THE MLS PANEL RECORDING

On November 9, we hosted Realtracs CEO Stuart White and CRMLS Vice- President and General Counsel Ed Zorn as a part of our Member Luncheon and Board of Directors Installation. The focus in