NAR deadline change

Deadline Reset For NAR Settlement Practice Changes

The National Association of Realtors released updates to its proposed settlement agreement related to class-action lawsuits, which received initial approval from the court on April 23rd.

The updates include details related to practice changes required for NAR members under the settlement agreement, and resets the effective date for those changes. The settlement requires NAR to implement changes no later than the date plaintiffs can issue class notice, which is August 17th.

MLSs that have opted into the settlement agreement have until September 16th to comply and to be considered released parties.

Practice changes required by the settlement are as follows:

  • Eliminate and prohibit any requirement of offers of compensation in the MLS between listing brokers or sellers to buyer brokers or other buyer representatives;
  • Retain and define “cooperation” for MLS participation;
  • Eliminate and prohibit MLS participants, subscribers and sellers from making any offers of compensation in the MLS to buyer brokers or other buyer representatives;
  • Require the MLS to eliminate all broker compensation fields and compensation information in the MLS;
  • Require the MLS to not create, facilitate or support any non-MLS mechanism (including by providing listing information to an internet aggregator’s website for such purpose) for participants, subscribers or sellers to make offers of compensation to buyer brokers or other buyer representatives;
  • Prohibit the use of MLS data or data feeds to directly or indirectly establish or maintain a platform of offers of compensation from multiple brokers or other buyer representatives. Such use must result with the MLS terminating the participant’s access to any MLS data and data feeds;
  • Reinforce that MLS participants and subscribers must not, and MLSs must not, enable the ability to filter out or restrict MLS listings that are communicated to customers or clients based on the existence or level of compensation offered to the cooperating broker or the name of a brokerage or agent;
  • Require compensation disclosures to sellers, as well as prospective sellers and buyers;
  • Require MLS participants working with a buyer to enter into a written agreement with the buyer prior to touring a property.
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