NAR Settlement Resources
On March 15, the National Association of REALTORS® (NAR) announced an agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions. The proposed settlement is subject to court approval and clearly states that NAR continues to deny any wrongdoing regarding the Multiple Listing Service (MLS) cooperative compensation model rule (MLS Model Rule).
The Vail Board of REALTORS® and the Vail Multi-List Service will share guidance and resources on how this will impact our members and MLS subscribers. Please refer to updates from NAR, VBR, and the Colorado Association of REALTORS® as the most reliable resources.
Below are videos and links to key talking points regarding the proposed settlement and any potential changes to the MLS model. Cooperative compensation remains a choice for consumers when buying or selling a home, and the MLS remains a valuable tool for aggregating and distributing data to subscribers, consumers, and vendors.
What's Ahead For You?
Make sure to read a special digital supplement of REALTOR® Magazine with 16 pages of important content that will dispel misinformation about the proposed settlement. It also includes valuable resources that help separate litigation facts from fiction, debunk myths, and help explain the importance of a written buyer agreement.
Get the Facts
A central resource for updates and materials about NAR’s steadfast commitment to strengthen the association, defend REALTORS® and their immense value, and look to the future.
Although the proposed settlement is only binding on brokers who are members of NAR and the Realtor® MLSs, it may still have some impact on real estate practice in Colorado. To understand this potential impact, it is helpful to review the requirements set by state law and regulations. Please read a statement from Director Marcia Waters of the Division of Real Estate.
A statement from the Colorado Association of REALTORS®
CAR will be actively working to advocate for any changes that may be appropriate and necessary at both the Colorado legislature and the Colorado Real Estate Commission.
The Truth About the NAR Settlement Agreement
Misinformation has been pervasive in the media over real estate commissions. Here are the facts you should know.
A Fact Sheet You Can Use
NAR's factsheet helps to clear up inaccuracies you may have seen in the news or on social media. It also explains the implications for all members and details the new rule on offers of compensation.
Helpful Videos for Members
NAR President Kevin Sears and NAR Chief Legal Officer Katie Johnson recorded a webinar on March 22 discussing the settlement agreement and what it means for the association and its members.
Do you have questions regarding the NAR Settlement Agreement? Cara Connolly, 2024 VBR Chair, explains key points and what may be happening in the near future. Hint: Cooperative compensation is not going away.
Pending MLS Changes
NAR has agreed to put in place a new MLS rule prohibiting offers of broker 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) via the MLS provided that such concessions are not conditioned on the use of, or payment to, a buyer broker. This change is expected to go into effect in July of this year.
- 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. Using buyer brokerage agreements will mandate what we have long encouraged our members to do - enter into written agreements that help consumers understand exactly what services and value will be provided, and for how much. This change is also expected to go into effect in July of this year.
Despite what the media is saying or what you may have heard, cooperative compensation is NOT going away. However, NAR has agreed to remove the offer of compensation from the MLS. Any rule change will NOT go into effect until July 2024.
More resources at competition.realtor
Additional resources are available for members and the public, including explaining how REALTORS®
- Champion fair housing for all,
- Promote consumer access and opportunity,
- Foster business competition,
- And help buyers and sellers navigate the market and the complexities of home purchases.