National Association of Realtors
The National Association of Realtors (NAR) announced that commission settlement rules take effect on August 17, 2024.
In a previous article we wrote about NAR’s $418 million commission settlement agreement and forthcoming changes to Multiple Listing Service (MLS) rules.
NAR posted a 57 page document on its website: Summary of MLS Policy Changes.
Nine Key Changes to the MLS
The document lists 9 key changes to the MLS.
Importantly, these rules prohibit offers of broker compensation on the MLS or non-MLS mechanism. Likewise, “compensation disclosures will be required between consumers and their agents” according to an Inman article.
Additionally, “the rules prohibit listing agents from making offers of compensation in the MLS to buyers’ agents”.
One of the key changes on the list is the inability to filter listings “based on the existence or level of compensation offered to the cooperating broker or the name of a brokerage or agent”.
Furthermore, buyers are required to have signed agreements with their agents before touring homes.
The NAR document also states a rule to “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.”
Along with a mandate and definition for “cooperation” with MLS participation.
The litigation history leading to these MLS changes is lengthy.
It all began in October 2023 with the Sitzer-Burnett verdict that resulted in a $1.8 billion settlement.
The litigations gained breadth as similar lawsuits began sprouting up nationally. In December 2023 we covered the Florida Realtors Lawsuit. Then in February 2024 we covered the $70 million settlement in the Keller Williams commission suit.
These changes will shape the landscape of real estate going forward. We will be here, following along, and keeping you informed.
Fluid Realty
The Fluid Realty Team is Jacksonville’s top real estate group and local boutique brokerage. We provide a full-service experience with the best realtors in the area. Our expertise includes luxury beach real estate within the four Beaches of Jacksonville, FL: Atlantic Beach, Neptune Beach, Jacksonville Beach, and Ponte Vedra Beach.
