The


National
Association
of
Realtors
(NAR)
can
breathe
a
small
sigh
of
relief.
The
trade
group’s
nationwide

settlement
of
the

commission
lawsuits
has
passed
its
first
hurdle
as
Judge
Stephen
R.
Bough,
who
oversaw
the

Sitzer/Burnett
lawsuit,
granted
preliminary
approval
to
NAR’s
settlement
on
Tuesday. 

While
the
agreement
still
must
receive
final
approval
from
the
court,
the
industry
is
now
one
step
closer
to
operating
under
the
new
rules
outlined
in
the
settlement
agreement.
According
to
NAR,
the
new
rules
would
go
into
place
in
July
of
this
year. 

In
his
ruling,
Bough
called
the
proposed
changes
“fair,
reasonable
and
adequate.” 

Under
the
terms
of
the
settlement
agreement,
NAR
will
pay
$418
million
to
a
settlement
fund
over
the
course
of
four
years,
and
the
trade
group
is
barred
from
establishing
any
sort
of
rules
that
would
allow
a
seller’s
agent
to
set
compensation
for
a
buyer’s
agent.

Additionally,
all
fields
displaying
broker
compensation
on MLSs must
be
eliminated,
and
there
is
a
blanket
ban
on
the
requirement
that
agents
subscribe
to
MLSs
in
the
first
place
in
order
to
offer
or
accept
compensation
for
their
work.

The
settlement
agreement
also
mandates
that
MLS
participants
working
with
buyers
must
enter
into
a
written buyer
broker
agreement. 

A
final
approval
hearing
for
the
settlement
has
been
set
for
November
2024.
The
court
will
hold
a
final
approval
hearing
for
the
settlement
agreements
reached
by


Anywhere,


RE/MAX
and


Keller
Williams
in
May
2024.

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