NAR Announces $418 Million Settlement Agreement in Commissions Suit, as well as changes to MLS rules.
National Association of Realtors
In March 2024, the National Association of Realtors (NAR) announced a proposed $418 million settlement agreement to the Sitzer-Burnett verdict. According to a Florida Realtors article, the settlement agreement “would end litigation of claims brought by home sellers related to broker commissions”. The proposed settlement requires approval by a judge. That is anticipated to take place in December. However, the new MLS rules, described below, will take effect in July 2024, prior to judge approval.
In a November 2023 blog post, we began covering litigation over commissions between the real estate industry and consumer advocates. The initial October 2023 Sitzer-Burnett verdict that resulted in a $1.8 billion settlement gained breadth as similar lawsuits began sprouting up nationally. In December 2023 we covered the Florida Realtors Lawsuit. Then in February 2024 we covered the $70 million settlement in the Keller Williams commission suit.
New MLS Rules
In addition to the proposed $418 million NAR settlement agreement, the settlement also includes agreement to enact two new Multiple Listing Service (MLS) rules. The first rule prohibits offers of broker compensation on the MLS. A recent NAR article explains, “This would mean that offers of broker compensation could not be communicated via the MLS, but they could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals.” The second rule requires “MLS participants working with buyers to enter into written agreements with their buyers.”
Value of Real Estate Agents and Brokers
Historically, nearly 90% of homebuyers have chosen to work with a real estate agent or broker, according to this Fortune article. The article also predicts that this is not anticipated to change in light of recent events. There will always be great value in having an experienced real estate professional on your side. A seasoned realtor provides comprehensive support in every aspect of real estate transactions from the early phases of weighing options, through negotiations and well past the closing date. When working with an experienced realtor, you also receive the benefit of their trusted network of professionals.
Fluid Realty
The Fluid Realty Team is Jacksonville’s top real estate group and local boutique brokerage. We provide a full-service experience with the best realtors in the area. Our expertise includes luxury beach real estate within the four Beaches of Jacksonville, FL: Atlantic Beach, Neptune Beach, Jacksonville Beach, and Ponte Vedra Beach.
