A Message About The NAR Settlement

In March 2024, the National Association of Realtors (NAR), on behalf of its millions of members, agreed to settle in order to end litigation brought against the organization by homeowners in several states. The multiple suits claimed that sellers should not be obligated to offer a commission to the buyer’s brokerage and agent. However, the fact is that there was never an obligation on the seller's part to pay the buy-side commission. The cooperative compensation model, a customary practice adopted in the 1990s with a goal to protect consumers, has always made compensation negotiable on both the seller and buyer side. 

Beginning in August 2024, NAR will roll out its new policy in line with the settlement agreement, which bans offers of buyer-brokerage compensation from being visible on the Multiple Listing Service (MLS), even when the seller is offering compensation. Offers of compensation may be communicated in other ways, off the MLS, and sellers should discuss their options with their agent.

In addition, as more buyers may now be paying their Realtor for their services, NAR will require buyers to sign a buyer agency agreement before touring a home for the first time. This contract will outline the relationship between the buyer and the brokerage/agent, including services provided, length of service, and terms for compensation.

The decision to work with a qualified real estate broker when selling or buying a home is a crucial one. While the recent settlement by the National Association of Realtors brings nationwide changes to how Realtors are compensated, it does not impact the service we will continue to provide for our clients.

At The Gallery Residential Brokerage, our broker- and sales-associates provide invaluable guidance and are always adapting to ways to serve you better. For questions or concerns about how the new rules may affect you, please contact Broker/Owner John Meechan at 732-904-0614 or meechanbroker@gmail.com.