What does NAR’s new settlement mean to real estate professionals?

You have probably seen the headlines by now: The National Association of Realtors reached a $52.25 million settlement.

Another commission lawsuit. Another big number.

Unfortunately, NAR has not been clear, once again, about what this means to you, the individual agent sitting at the kitchen table, so let’s fix that. Here is a plain language look at what this settlement is, why it matters and what, if anything, it actually changes about how you do your job.

What is this settlement?

NAR agreed to opt into a settlement in a case called Tuccori v. At World Properties, contributing $52.25 million to a fund that resolves claims brought by homebuyers. The argument buyers made is essentially the same one that sellers made in the Sitzer-Burnett case: the way commissions worked in real estate cost them more money than it should have. NAR has denied any wrongdoing throughout all of this litigation but agreed to contribute to a resolution.

The settlement still needs a judge to approve it. A final court hearing is scheduled for July 28, so officially, this is not done yet.

What makes this one different from the Burnett settlement?

Remember how a lot of brokerages and MLSs felt left out of the Burnett deal unless they paid separately to get covered? This one was built differently.

Any brokerage where a Realtor is the principal that has not already been named in a buy-side lawsuit, is covered here, with no minimum transaction volume requirements. State and local Realtor associations are covered. Both NAR-affiliated MLSs and non-Realtor MLSs are covered. That last group was not protected in the Burnett settlement, and that omission caused a lot of frustration at the time.

Congratulations to NAR’s CEO Nykia Wright and her legal team. The Burnett settlement created real chaos for the membership under the previous NAR leadership. Brokerages and MLSs were left out, confused about where they stood and many had to pay separately just to get covered. 

This settlement does the opposite. It was built to protect more people, more broadly, with no transaction volume requirements and no extra hoops to jump through. That is not an accident. That is a legal team that actually went to bat for the membership, and it deserves to be recognized. Broader protection means more stability for the professionals building their businesses inside this industry. That matters.

Does this change how you practice?

The answer is no. This settlement does not introduce any new rules. The practice changes that took effect Aug. 17, 2024 are still the standard, and this settlement simply requires ongoing compliance with those same changes. Nothing new is being added.

As a quick reminder, here is what those changes require:

• Buyers and sellers must be clearly told that commissions are not set by law. You can set your fee and stay firm to it; you just have to make it clear that your fee is not set by law. It’s each individual agent and/or broker’s individual business decision what fee they charge.
• A written buyer representation agreement must be in place before you show a buyer any property. The only exception is when a buyer attends an open house not represented. 
• Compensation must be discussed upfront, not after the relationship is already underway.

If you adjusted your practice when those rules came out in 2024, you are already doing everything this settlement requires. Nothing about your day-to-day changes.

What this means for you right now

The biggest legal threat on the buy side is on its way out the door

If this settlement gets court approval in July, the most significant open litigation targeting the broader industry will be behind us. Agents have been operating under a cloud for two years. That cloud is starting to lift.

The buyer agreement is not a temporary inconvenience. It is the new normal

Some agents are still waiting for things to go back to the way they were. They are not going to. The written buyer agreement, the upfront value conversation, the compensation discussion before the first showing: that is just how real estate works now. The agents who have gotten comfortable with it are already ahead of the agents who have not.

Your brokerage is probably protected

If your broker has a Realtor as a principal and has not been named in a buy-side lawsuit, you are most likely covered under this settlement. That is real peace of mind for agents who have been quietly worried about where they stood legally.

What buyers think about commissions is still your problem to solve

Two years of headlines have told buyers they were overcharged. A settlement does not un-ring that bell. When you sit across from a buyer, and they bring up commissions, no court ruling is going to do the explaining for you. That conversation belongs to the agent in the room, and how you handle it will either build trust or cost you the relationship.

One more thing to keep an eye on

The attorneys behind a separate set of buyer lawsuits called the Batton cases have been actively fighting to block brokerages from opting into the Tuccori settlement because the attorneys want to be able to shake down our members. NAR is monitoring that closely.

If those objections gain traction, it could push the timeline back. July 28 is the date that matters. Until then, this is still a proposed settlement waiting on a judge.

Here is what you really need to take away from all of this: The industry is moving toward resolution. The rules are not changing again. Your brokerage is likely protected. And the conversation with your buyers about value and compensation is still entirely on your shoulders.

That last part is actually the good news, even if it does not always feel that way. Because the agents who know how to have that conversation confidently and clearly are the ones who are going to build the strongest businesses in this new environment.

The legal chapter is closing. What you do with it from here is up to you.