Overview
The National Association of Realtors (NAR) settled the major antitrust cases known as Sitzer/Burnett and Moehrl for $418 million, with the new rules taking effect August 17, 2024. Offers of buyer-broker compensation can no longer be advertised on the MLS, and buyers working with a REALTOR must now sign a written buyer-broker agreement before touring homes. The traditional 6% commission wasn't banned, commission rates remain negotiable as they always were, but how compensation is communicated and negotiated changed significantly.
What the Settlement Covers
The settlement released the vast majority of NAR members, state and local REALTOR® associations, association-owned MLSs, and brokerages with 2022 residential transaction volume of $2 billion or less from liability in the Sitzer/Burnett and Moehrl cases. Brokerages above that volume threshold, agents affiliated with HomeServices of America and related companies, and employees of remaining corporate defendants were handled separately in ongoing litigation.
Compensation and MLS Changes
Since August 17, 2024, offers of compensation can no longer be listed on the MLS. Buyer-broker compensation can still be negotiated, just off-MLS, through fixed-fee commissions, à la carte services, or seller concessions, keeping flexibility in the hands of consumers and their agents, just through a different channel than before.
Written Buyer Agreements
MLS participants working with buyers are now required to have a written representation agreement in place before touring homes together. This is meant to increase transparency, ensuring buyers understand upfront what services they'll receive and how their agent is compensated.
The Settlement Payment
NAR agreed to pay $418 million over four years, a substantial figure reflecting the scale of the litigation and NAR's move to resolve the claims.
Impact on the Traditional 6% Commission Structure
Historically, sellers paid a commission to their listing agent, who then shared a portion with the buyer's agent, often landing around a "standard" 6% total, even though the rate was always technically negotiable. That flexibility hasn't changed. What has changed is that compensation offers to buyer's agents are no longer advertised through the MLS, giving sellers more direct discretion over whether and how to offer that compensation, often through a seller concession negotiated as part of the offer instead.
This also means buyers may now need to compensate their own agent directly in some transactions, rather than assuming it's automatically covered by the seller. Since implementation, real-world commission rates have shown modest movement lower on average, though the range varies significantly by market and negotiation.
What This Means for Buyers
Enhanced transparency: the required written representation agreement means you know upfront what services you're getting and how your agent is compensated, rather than assuming.
Compensation flexibility: compensation isn't listed on the MLS anymore, but it's still negotiable, through fixed fees, seller concessions, or a share of the listing broker's compensation.
More direct negotiation: without MLS-listed offers, buyers and agents often negotiate compensation more directly based on the specific services and value provided.
What This Means for Sellers
Continued flexibility: sellers can still offer buyer-broker compensation as an incentive; it just happens off the MLS now rather than being advertised there.
Concessions still allowed: sellers can still communicate concessions, like covering buyer closing costs, through the MLS, provided they're not conditioned on using or paying a specific buyer's broker.
Adjusted market dynamics: removing compensation offers from the MLS changed how some sellers and listing agents position properties, though many have adapted with more direct communication about what they're willing to offer.
