NAR Reaches Agreement to Resolve Nationwide Claims Brought by Home Sellers

Today, NAR announced an agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions. The agreement would resolve claims against NAR, over one million NAR members, all state/territorial and local Realtor® associations, all association-owned MLSs and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below. This will go into effect in mid-July 2024.

March 15, 2024

Dear DMAR Members,

I am writing to inform you of an important announcement from the National Association of Realtors® (NAR). Today, NAR announced an agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions. The agreement would resolve claims against NAR, over one million NAR members, all state/territorial and local Realtor® associations, all association-owned MLSs and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below. This will go into effect in mid-July 2024.

This settlement underscores the importance of preserving consumer choice in real estate transactions. Compensation for brokers has always been and will continue to be negotiable. While the compensation would no longer be listed publicly on the MLS, DMAR believes that it should always be negotiated between agents and the consumers they serve. NAR has long encouraged its members to use written agreements because they help consumers understand exactly what services and value will be provided, and for how much. The settlement provides that MLS participants working with buyers must enter into written representation agreements with those buyers.

In Colorado, it's crucial to note that our MLS (REcolorado) has always been accessible to all agents, regardless of their membership status with a Realtor® association.

Despite the complexities surrounding this settlement, DMAR remains unwavering in its dedication to advancing the real estate industry in a manner that benefits both our members and the communities we serve. We take pride in our longstanding role as the voice of real estate in the Denver Metro area, and we are committed to delivering unparalleled value to both our members and consumers.

As we navigate the changes resulting from this settlement together, DMAR reaffirms its commitment to upholding our mission of facilitating transparent, ethical and successful real estate transactions for all parties involved. We will continue to provide updates as they become available to ensure that our members and their clients are equipped with the latest information and look forward to hosting future education sessions soon.

For further reference, please consult the following resources: