BAM Key Details:

  • On Friday, May 3, 2024, the National Association of Realtors (NAR) released information about upcoming changes to its practices regarding the MLS, based on the nine requirements stipulated in the proposed settlement. 
  • Now that the court has granted preliminary approval of the settlement agreement, the date for the full implementation of these changes has been set for August 17, 2024.

Today, the National Association of Realtors (NAR) announced when required practice changes due to their legal settlement will kick in. 

Revised policies will go into effect on August 17, 2024, giving the industry just over three months to prepare. 

MLSs that opted into the settlement have until September 16, 2024, to implement the required policy changes, though NAR’s accelerated rule change process allows MLSs three months to adapt. REALTOR® MLSs are expected to implement the policy changes by August 17. 

NAR shared additional details with its members regarding the upcoming changes in an email from Katie Johnson, NAR Chief Legal Officer. In addition, the NAR Settlement FAQ page has been updated to reflect changes. Read on for more. 

NAR Practice Changes: Reviewed & Adopted

Per the requirements stipulated in the proposed Settlement Agreement, NAR has reviewed and made the following updates to its MLS policies and model MLS governing documents: 

  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. 

Following their review by the MLS Emerging Issues and Technology Advisory Board, the above changes were adopted by the NAR Leadership Team. 

Stay tuned as we continue tracking the progress of the proposed NAR settlement.