What is the NAR Settlement, and what does it mean for buying or selling homes? NAR refers to The National Association of Realtors, which recently reached a $418 million lawsuit settlement regarding allegations about broker compensation practices.
Understanding the NAR Settlement:
- This settlement signals a shift in how real estate has traditionally operated, especially in terms of how realtors are compensated and the agreements with their clients.
- The regulatory changes introduced by the settlement focus on managing broker compensation offers through Multiple Listing Services (MLS), aiming to reshape the industry landscape.
Key Changes:
- NAR's new rule prohibits offering compensation to buyer’s brokers on MLS listings, allowing negotiations off-MLS and highlighting the importance of consulting real estate professionals.
- Sellers can still provide concessions on deals, such as covering buyer closing costs.
- NAR now mandates written representation agreements for MLS participants working with buyers, emphasizing professional service relationships.
For a comprehensive understanding of these updates, I urge you to review the full NAR statement available here.
