NAR Required Changes Under Settlement Agreement

NAR announces practice changes per settlement, effective August 17, 2024, with detailed guidance and updates on facts.realtor to ensure member and MLS readiness.

As NAR prepares for the upcoming REALTORS® Legislative Meetings in Washington, D.C., they have announced  significant practice changes mandated by the Settlement Agreement. These changes involve updates to the MLS policy handbook, summarized below, which will take effect on August 17, 2024. You can find a detailed explanation of each change on facts.realtor.

Under the terms of the settlement, the National Association of Realtors (NAR) must implement these changes by the date of class notice. The earliest date for class notice has been confirmed as August 17, 2024, and NAR is announcing these changes well in advance to give NAR members and MLSs sufficient time to prepare.

MLSs participating in the settlement have until September 16, 2024, to make the required policy adjustments and qualify as released parties per the appendices they signed. Despite this, NAR’s expedited rule change procedure allows MLSs a three-month period to adapt. According to mandatory NAR policies, REALTOR® MLSs need to implement the changes by August 17, 2024. NAR advises all participating MLSs to meet this implementation deadline.

In the next few days, NAR will delve into more details about these changes and invite questions and feedback. Meanwhile, NAR’s FAQ section has been updated to reflect the new effective date and additional implementation specifics. As more information becomes available, NAR will continue to distribute updates and post materials on facts.realtor.

Pursuant to the requirements of the proposed Settlement Agreement, the MLS policies and model MLS governing documents were reviewed and updated with the key changes below: 
  1. Eliminate and prohibit any requirement of offers of compensation in the MLS between listing brokers or sellers to buyer brokers or other buyer representatives.
  2. Retain, and define, "cooperation” for MLS Participation.
  3. Eliminate and prohibit MLS Participants, Subscribers, and sellers from making any offers of compensation in the MLS to buyer brokers or other buyer representatives.
  4. Require the MLS to eliminate all broker compensation fields and compensation information in the MLS.
  5. Require the MLS to not create, facilitate, or support any non-MLS mechanism (including by providing listing information to an internet aggregator’s website for such purpose) for Participants, Subscribers, or sellers to make offers of compensation to buyer brokers or other buyer representatives. 
  6. 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.  Such use must result with the MLS terminating the Participant’s access to any MLS data and data feeds.
  7. Reinforce that MLS Participants and Subscribers must not, and MLSs must not enable the ability to filter out or restrict MLS listings that are communicated to customers or clients based on the existence or level of compensation offered to the cooperating broker or the name of a brokerage or agent.
  8. Require compensation disclosures to sellers, and prospective sellers and buyers.  
  9. Require MLS Participants working with a buyer to enter into a written agreement with the buyer prior to touring a property. 

The policy changes  were reviewed by the MLS Emerging Issues and Technology Advisory Board and adopted by the NAR Leadership Team and will be effective on August 17.

SUMMARY OF NAR POLICY CHANGES (PDF)