NAR Offers Update on Settlement and Pushes Back Deadline to Implement Changes

Big changes are coming to the real estate industry, thanks to the NAR settlement announced in March. Fortunately, real estate professionals now have more time to adapt to these changes.

Initially, these "practice changes" were to go into effect in July. However, the National Association of REALTORS® recently announced that policy changes related to the settlement won't go into effect until August 17.

So what should Realtors know about these changes before the deadline? NAR recently shared a summary of revisions to the MLS policy handbook, as seen below. A more detailed explanation of each practice change is available on facts.realtor. Realtors can also consult the NAR Settlement FAQ for more information.

Summary of policy changes

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.

Related reading

• How to Talk About the NAR Settlement with Clients and Prospects
• NAR Settlement Impact: What to Start Doing Today
• 100 Things Buyer's Agents Do for Their Clients