NAR Settlement Gains Preliminary Approval

Judge Stephen R. Bough has granted preliminary approval for the proposed settlement reached by the National Association of Realtors (NAR). 

The Sitzer/Burnett judge ruled the changes NAR agreed to with the plaintiffs were “fair, reasonable, and adequate,” Inman reported. 

Next up is the hearing for the settlement’s final approval, which the judge has set for November 2024. 

NAR is pleased with the ruling, as spokesman Mantill Williams indicated in a statement:

It has always been NAR’s goal to resolve this litigation in a way that preserves consumer choice and protects our members to the greatest extent possible. This proposed settlement achieves both of those goals and provides a path for us to move forward and continue our work to preserve, protect and advance the right to real property for all.

Mantill Williams

NAR Spokesman

Industry Changes Coming

With preliminary approval granted, the industry is one step closer to proposed changes that will go into effect in July, according to NAR. 

In addition to paying $418 million over the next four years, NAR agreed to prohibit offers of buyer broker compensation on the MLS. Offers of compensation can still be made off the MLS. 

If granted final approval, the settlement will afford blanket protection for NAR against a growing list of antitrust commission lawsuits filed since Sitzer/Burnett. Real estate companies and MLSs that join the settlement according to the terms set forth will also be protected. Those who have yet to opt into settlement have until June 18 to do so. 

Ninety-four brokerages were left out of the agreed-upon settlement, all with transaction volume in 2022 exceeding $2 billion. That is why some of the biggest names in real estate—including Real Brokerage and Compass—have reached settlements of their own. 

Stay tuned as we continue to track the progress of this settlement as well as all ongoing litigation in the real estate industry.