NAR Settlement Rules (2024)
Definition
The 2024 National Association of Realtors settlement fundamentally changed how buyer agents are compensated, requiring written agreements before showing property and prohibiting cooperative compensation offers on the MLS.
Example
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.
Exam Tip
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 Buyer Rep Terms
Buyer Broker Duties
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
Buyer Representation Disclosure
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.
Cooperative Compensation
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.
Buyer Consultation
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.
Buyer Loyalty Obligation
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.
Termination of Buyer Agency Agreement
The legal ending of a buyer representation agreement, which can occur through expiration, mutual consent, breach, or specific termination provisions outlined in the contract.
Frequently Asked Questions
Test Your Buyer Rep Knowledge
Practice with exam-style questions to make sure you can apply NAR Settlement Rules (2024) and other buyer rep concepts.