On March 15, 2024, the National Association of REALTORS® (NAR) announced it reached a settlement in a series of lawsuits surrounding real estate commissions. The agreement reached contains a release of those claims brought on behalf of home sellers related to broker compensation and covers NAR, its members, state and local REALTOR® associations, all association owned multiple listing services (MLS), and all but the very largest corporate brokerages. It is therefore expected that the settlement will resolve the claims brought against the Arizona REALTORS® in the Masiello lawsuit filed in Arizona, along with the named local REALTOR® associations, and potentially all of the named brokerage defendants.

In addition to a financial payment significantly less than the judgment imposed in the Sitzer-Burnett case, NAR has agreed to put in place a new MLS rule prohibiting offers of broker compensation on the MLS. This means that offers of broker compensation will no longer be able to be communicated via the MLS beginning in mid-July 2024, but will be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Further, NAR has agreed to enact a new rule requiring MLS participants working with buyers to enter into a written representation agreement with those buyers.

While the settlement is complex and has many details that will take time to fully understand, the Arizona REALTORS® remains committed to serving its members and will continue to provide you with the tools and resources you need to succeed in today’s real estate market. We look forward to providing you with the latest guidance as more information becomes available and the true impact of the settlement is realized.

Although the NAR rule changes proposed in the settlement will not take effect until July, the Arizona REALTORS® proactive approach to compensation means that many of its forms already provide the tools you need to navigate this new environment. We will of course be revising additional forms as more details emerge and will have them ready for our members before the new rules go into effect.

The Arizona REALTORS® will also continue to offer quality education on the use of buyer representation agreements, how to explain your value proposition, and how to most effectively talk to clients about compensation.

To read the full statement from NAR, please click here.

To watch a video from NAR Chief Legal Officer and Member Experience Officer Katie Johnson and NAR President Kevin Sears discussing the details and impact of the settlement, please click here.

Additionally, there are materials available for members about the announcement at www.facts.realtor. You will need your NAR login credentials to access these materials and updates will continue to be posted to www.competition.realtor with the latest information.