NAR Settlement

New Practices and Policies Following the NAR Settlement

Practice changes following NAR’s Settlement Agreement that would resolve claims brought on behalf of home sellers related to broker commissions have been implemented across the country as of August 17, 2024.

Under the settlement agreement, two important changes will be made to how REALTORS® conduct their business. These practices include:

First, offers of compensation will no longer be included on Multiple Listing Services (MLSs). It’s important to understand that if home sellers allow their listing agent to offer compensation to a buyer’s agent as a way to attract buyers the listing agent or broker can communicate this information off the MLS. 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.

Second, agents working with a buyer are required to enter into a written agreement before touring a home (e.g., visiting an open house or providing a live virtual tour). The agreement must clearly and specifically set out the amount or rate of compensation.

These new rules help move the real estate industry in a positive direction. They raise the bar on transparency and fairness and emphasize the importance of clear, negotiated agreements that protect both agents and buyers.

For more information, please contact your real estate professional. You may also find more details using the links below.

RESOURCES

Honolulu Board of REALTORS® 1136 12th Avenue, Suite 200 Honolulu, Hawaii 96816
Phone: (808) 732-3000
Email:
Hours: