Big Changes in Real Estate Industry to Take Effect on Aug. 17

SAN ANGELO, TX — The National Association of Realtors has released a reminder that big changes to real estate practices, stemming from a $418 million settlement agreement related to broker commissions, will be implemented nationwide on August 17, 2024.

These changes aim to resolve claims brought on behalf of home sellers and will have a broad impact on how real estate transactions are conducted, the release stated. 

Key among the changes is that real estate agents can no longer receive compensation on Multiple Listing Services (MLS). While this practice has traditionally made homeownership more accessible — particularly for first-time buyers — by expanding the potential buyer pool, offers of compensation will now only be available through off-MLS negotiations between consumers and real estate agents.

Additionally, real estate agents working with buyers will now be required to discuss their compensation upfront, and they will be required to have a written buyer agreement in place before touring homes. This requirement is designed to provide clarity and emphasize consumer choice, though the NAR does not dictate the terms of these agreements. The organization has provided resources to help realtors and consumers understand and adapt to these changes, including educational materials and guides.

"NAR members are dedicated, intelligent, and highly adaptable experts in their fields — that’s why Realtors are such an integral part of the home buying and selling process," said Kevin Sears, NAR President. "These changes help to further empower consumers with clarity and choice when buying and selling a home. As the August 17 practice change implementation date approaches, I am confident in our members’ abilities to prepare for and embrace this evolution of our industry and help to guide consumers in the new landscape."

Consumers can find additional information on what these changes mean for their homebuying and selling experiences in NAR’s buyers and sellers guides. For NAR members, the practice changes are outlined in detail here, and detailed information is available in NAR’s FAQ. Please visit facts.realtor for the latest updates on the settlement and practice changes.