Why Overturning the NAR Settlement Could Make Things Worse

Jared James explains the NAR settlement appeal, the mid-year timeline, and why keeping the ruling in place may bring more stability than overturning it.
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For months, the real estate industry has been adjusting to life after the largest legal settlement in the industry’s history. 

Now, that legal chapter may not be closed after all.

In a recent Instagram reel, real estate coach and industry leader Jared James broke down a recent development. On January 14, the landmark cases that triggered the settlement were officially appealed in the 8th Circuit Court of Appeals. 

The ruling likely won’t come until mid-year, but the implications are already stirring strong opinions across the industry.

Some are hoping the settlement gets overturned. Jared isn’t one of them.

 

View this post on Instagram

 

A post shared by Jared James (@jaredjamestoday)

 

What’s Actually Being Appealed and When a Decision Is Expected

The appeal centers on the Sitzer-Burnett and Gibson verdicts that reshaped commission structures and industry practices nationwide. While the headlines around the settlement were hard to miss last year, the appeal process has moved forward in the background.

Jared laid out both the timing and the weight of the moment clearly in his reel.

“On January 14th, the landmark Sitzer-Burnett and Gibson cases that led to the largest settlement in the history of our industry were appealed in the 8th Circuit Court of Appeals. And there’s been a lot of thoughts about this. They won’t actually come out with a judgment until later this year, probably middle of the year.”

In other words, nothing changes overnight. But by summer, the industry could either lock in the new reality or get pulled back into legal uncertainty.

That possibility alone has sparked emotional reactions across the business.

Before sharing his own position, Jared pointed out how divided people already feel about the settlement itself.

“There’s a lot of emotion in our industry, in the real estate industry, and people want it overturned. They’re like ‘it’s wrong, it shouldn’t have been.’ And yet, one of the people who is saying ‘No, we want it to stand’ is the National Association of Realtors.”

That detail caught a lot of attention. NAR, despite bearing the financial and policy consequences of the settlement, is pushing for it to remain in place.

And after giving it more thought, Jared found himself in the same camp.

Why Stability Beats Restarting the Legal Fight

Jared was clear that supporting the settlement doesn’t mean liking it. It means choosing clarity over chaos. As he walked through his thinking, he framed it as a shift away from emotion and toward long-term reality.

“My thoughts are, now that I’ve thought about this a little bit more, I don’t want it overturned. Although I don’t agree with it, I don’t want it overturned. 

“There comes a time when you have to put your emotions aside and deal with reality, and deal with what’s better moving forward.”

That “moving forward” piece is where his argument really lands. He emphasized that knowing the rules, even if they’re imperfect, gives the industry room to adapt, improve systems, and focus on serving clients instead of constantly reacting to legal headlines.

“And I think there’s something about having certainty and having clarity moving forward. Because if those get overturned, all that’s gonna happen is they’re gonna come back for even more, even more money than they got in the settlement, even stricter rules than what we already have.”

Jared sees a renewed legal battle as a move that increases risk rather than resolving it. He continued by connecting clarity directly to day-to-day business stability.

“I think there is something about having clarity for us all, knowing what the game is, knowing what parameters we’re working within, so we can focus on our clients. 

“I think that one of the worst things that could ever happen in this industry is all of that turmoil starting over again and having nothing but uncertainty.”

When you step back, the practical risks of an overturned settlement become easier to see. 

If the appeal succeeds, the most likely outcomes aren’t clean victories or quick fixes. Historically, large-scale litigation tends to snowball.

That could realistically mean:

  • Years of additional lawsuits and appeals that drag uncertainty well beyond 2026
  • Larger financial awards flowing primarily to legal teams, not dramatically improving outcomes for plaintiffs
  • New layers of regulation and stricter rules added on top of changes already in place
  • Continued confusion for consumers and businesses around compensation structures and compliance

In short, a longer road of instability, with a questionable payoff.  

Looking Ahead

Jared’s perspective fits into a bigger shift happening across the industry right now. The focus is moving away from fighting yesterday’s systems and toward mastering the environment that exists today. 

To that end, he, like many, see more value in clarity and stability than in the remote possibility that something good will come of scrapping the settlement and starting over. 

As Jared put it earlier, knowing the game frees you up to focus on your clients. 

That client-focused mindset will be front and center at BAM Pro Bowl III, where Jared will be joining James Dwiggins for a fireside chat focused on how to elevate your status in 2026. They look at what top performers do differently and how to build authority and trust that actually lasts.

If the last year has proven anything, it’s that waiting things out isn’t the move. The people who’ve adapted early are in a better spot now. 

BAM Pro Bowl III is your chance to learn directly from leaders who are doing exactly that.

See You at BAM Pro Bowl III

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About the Author

Sarah Lentz started writing for BAM in late May of 2022 and quickly realized she was exactly where she wanted to be (and still is). Before BAM, she worked as a freelance writer. She lives in Minnesota with her four kids and, in her free time, is writing her next book.

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