NAR’s Upcoming Practice Changes

For months, we’ve been talking about changes coming to the real estate industry as the result of a national settlement agreement related to broker commissions.

That time is finally upon us.

Starting on Aug. 17, there are two important changes related to how we conduct our business.

First, offers of compensation will be prohibited from appearing on Multiple Listing Services (MLSs).

It’s important to understand that home sellers and brokers may still offer compensation off MLSs. Compensation can include a range of options, including a fixed-fee commission paid directly by consumers, concessions from the seller such as buyer closing costs, or a portion of the listing broker’s compensation.

What doesn’t change is that commissions and fees have been and continue to be negotiable.

The second change will require that agents working with a buyer enter into a written agreement before touring a home. The agreement must clearly and specifically set out the amount or rate of compensation. The written agreement requirement does not require any type of professional relationship between real estate professionals and buyers.

Change can be tough, but these new rules help move our industry in a positive direction. They raise the bar on transparency and fairness, and they emphasize the importance of clear, negotiated agreements that protect both agents and buyers.

Another thing that won’t change per this agreement? REALTORS® will continue to provide invaluable services, guiding clients through complex and emotional transactions with expertise and dedication.

REALTORS® have been and will always remain committed to offering exceptional service and building trusted relationships with the buyers and sellers we work with, and now with even clearer guidelines to support us.

VISIT FACTS.REALTOR FOR ADDITIONAL RESOURCES AND ANSWERS TO FREQUENTLY ASKED QUESTIONS. THE INFORMATION PROVIDED HEREIN IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT A SUBSTITUTE FOR LEGAL ADVICE OR FOR THE TERMS OF THE NAR SETTLEMENT ITSELF. PLEASE CONSULT YOUR LEGAL COUNSEL.

Katie serves as the Director of Member Engagement and Communications. She plays a vital role in enhancing the organization's reach and engagement with its members. Katie manages the organization's social media channels, designs promotional materials, maintains our website, and is the face behind the camera at all of our events! She crafts and sends our weekly e-newsletters and is responsible for media relations and press releases including our Monthly Market Statistics. Katie is also the staff liaison for the Member Value and Communications committee and the Foundation Board of Directors. She graduated from Millersville University in 2022 with a Bachelor's Degree, majoring in Speech Communication with a concentration in Public Relations and a Minor in English Journalism. While at Millersville she was a goalkeeper on the field hockey team, Opinion Editor for the school newspaper, and a member of Omicron Delta Kappa (ODK) National Leadership Honor Society. In her free time, she enjoys playing pickleball, completing jigsaw puzzles, and of course spending quality time with her three adorable cats, Marshmallow, Shadow and Speeder.