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Understanding the

NAR Lawsuit Settlement

What You Need to Know

In March 2024, in response to a pending lawsuit judgment against them, the National Association of Realtors® released a set of proposed policy and practice changes that will reframe the relationship between real estate professionals and buyers. To be clear, the industry’s fiduciary commitment to the best interests of clients hasn’t changed, but the way agents and buyer clients formalize professional relationships will.

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Changes to the Homebuying Experience

As a homebuyer, this proposed settlement means there will be some changes to your real estate experience:

1. Required Buyer Agreements

Prior to this settlement proposal, it was acceptable (though not widely practiced) for buyer’s agents to forge relatively informal, unwritten agreements with their clients regarding service. Following these proposed changes, buyers must sign a service agreement with a real estate professional in order to be shown homes. 

2. Buyer’s Agent Compensation

Prior to the proposed changes in the settlement, buyer’s agents were compensated via a cooperation agreement with the seller and seller’s agent facilitated by the multiple listing service. While this sort of cooperation is still allowed, the MLS is no longer allowed to coordinate it. Buyer’s agents will now be responsible for negotiating their own compensation with clients.

FAQ

As a homebuyer, these changes will require new, important conversations between you and your real estate professional. A buyer service agreement will formalize your agent’s fiduciary responsibility to you, further protecting your interests. It will allow the opportunity for real, transparent communication with your agent around compensation, offering you a clear understanding of the cost of services and how those services benefit you. 

These conversations will ultimately set buyers up for greater success in their transactions. More buyers will start the home search process with a clear understanding of their strategy, how their agent will support them, and what it will take to get to the closing table. 

Two major changes: First, compensation offers to buyer’s agents will no longer be displayed on the MLS, and the MLS won’t be allowed to facilitate commission cooperation between the buy and sell sides of transactions. Second, all buyers will be required to sign a buyer agreement with their agent outlining service terms, including commission requirements.

Yes. Luxury Presence has created a strategy guide for agents seeking advice on negotiating buy-side compensation. Get your copy of The Future of Buy-Side Compensation here

The best agents have shifted their thinking from the top line to the bottom line. They're obsessed with the client experience. They're taking action very quickly to level up the technology in their businesses because they understand it's the only way to deliver strong profitability and a world-class client experience.

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How I Work With Buyers

As my client, you can expect nothing but the highest level of service and counsel. I take my fiduciary commitment to you extremely seriously and believe that the best way to advocate for your best interests is through preparation. For each property my clients consider, I create a complete set of market research, potential pricing and offer strategies, contract negotiation tactics, and more.

Before the NAR lawsuit settlement proposal, some buyer’s agents were able to get away with doing the bare minimum. Thanks to assumed cooperation with the seller, they might get paid for simply showing up, unlocking doors, and pushing papers. 

While that was never my approach, it is now no longer the world we live in. As my client, you can rest assured that I will provide you with expert-level service and advice throughout our professional relationship.

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"I've been with Coldwell Banker Beverly Hills for 36 years, and that's by choice. I could have gone anywhere, but I stayed because this company has always given me what matters most: trust, support, and integrity. It's where I built my career, my relationships, and my reputation. The people here have become like family, and even after all these years, I still feel proud to walk through those doors every day."
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"I started my Real Estate career with Coldwell Banker in Beverly HIlls 24 years ago after a long career in banking. Over the years I have appreciated the support and opportunities for growth, including serving as an Associate Manager and Mentor to new licensees. These responsibilities along with my own Real Estate business, have made my experience very rewarding. I enjoy helping other Agents and finding solutions in this complex business of residential real estate. The support I have received with Coldwell Banker Beverly HIlls over the years, has allowed me to achieve my goals and to represent my clients with the highest level of service, care and protection. The Coldwell Banker Realty Beverly HIlls name recognition and reputation is the gold standard in Real Estate"
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"From Day One to Top Tier: My Coldwell Banker Journey, I started my real estate career with Coldwell Banker—and I’ve never looked back. From the very beginning, I knew I was part of something extraordinary. The tools, support, and brand recognition set me up for success, but it’s the culture of excellence and integrity that’s kept me here. Coldwell Banker has empowered me to grow, lead, and consistently perform at the top tier of this industry. I’m proud to be part of a brand that not only values innovation and professionalism but also supports its agents like family. If you’re looking for a brokerage that truly invests in your success—Coldwell Banker is where it starts, and where it gets even better."
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