The settlement resolved antitrust lawsuits alleging that NAR rules artificially inflated commissions. Key changes include mandatory buyer representation agreements, removal of cooperative compensation from MLS listings, and allowing buyers to negotiate agent fees directly.
A listing agent can no longer offer 3% to the buyer's agent through the MLS. Instead, the buyer must agree to compensation terms with their agent before touring homes, and the seller may or may not agree to contribute to buyer agent fees.
This is a heavily tested topic for 2024-2026 exams. Know the THREE key changes: (1) written buyer agreements required, (2) no cooperative comp on MLS, (3) buyers can negotiate fees. Understand what IS and IS NOT allowed.
Related Terms
Related Concepts
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
A form that explains to the buyer the types of agency relationships available and the duties associated with each, required to be provided before substantive discussions begin.
The practice of a listing broker sharing commission with a buyer's broker, historically offered through the MLS but now prohibited from MLS display under the 2024 NAR settlement.
An initial meeting between a buyer and agent to discuss the buyer's needs, explain agency relationships, review representation agreements, and establish expectations for the home-buying process.
The duty of a buyer's agent to act solely in the buyer's best interest, avoiding any conflicts of interest and putting the buyer's needs above the agent's own financial interests.
Frequently Asked Questions
Study This in Your State
NAR Settlement Rules (2024) may have state-specific rules. Choose your state to study Buyer Representation with localized content: