**Important Update for NAR Members: New Settlement Agreement Practice Changes**
The National Association of REALTORS® (NAR) has recently announced new details regarding the proposed settlement agreement, which received preliminary court approval on April 23. This update provides important information on the practice changes required for NAR members and sets August 17 as the effective date for these changes.
**Key Points of the Settlement Agreement:**
1. **Elimination of Compensation Requirements:** The new policies will eliminate and prohibit any requirement for offers of compensation in the MLS between listing brokers or sellers to buyer brokers and other buyer representatives.
2. **Definition of Cooperation:** The term "cooperation" will be retained and clearly defined for MLS participation.
3. **Removal of Compensation Information:** MLS participants, subscribers, and sellers will no longer be able to make offers of compensation in the MLS. Additionally, all broker compensation fields and compensation information must be removed from the MLS.
4. **Prohibition of Non-MLS Compensation Mechanisms:** MLSs will not be able to create or support any non-MLS mechanisms (such as aggregating websites) for compensation offers. Any misuse of MLS data or feeds related to compensation offers will result in the termination of access to MLS data.
5. **Restrictions on Filtering Listings:** MLS participants and MLSs must ensure that MLS listings are not filtered out or restricted based on compensation offers or brokerage names when communicated to clients.
6. **Compensation Disclosures:** Sellers, as well as prospective sellers and buyers, must receive compensation disclosures.
7. **Written Agreements with Buyers:** MLS participants must enter into a written agreement with buyers before showing properties.
In a recent communication to members, NAR Chief Legal Officer and Chief Member Experience Officer Katie Johnson highlighted that the deadline of August 17 provides a three-month window for NAR members and MLSs to prepare for these policy adjustments. For MLSs that have opted into the settlement, the deadline to implement these changes is September 16.
For more information on the practice changes and the effective date, please refer to NAR’s settlement FAQs and visit facts.realtor for a detailed summary of the new policies.
Stay informed and prepared for these significant updates to ensure compliance and smooth transition!
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