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Published on March 18, 2024

You may have seen the news: The National Association of REALTORS® reached a proposed agreement to resolve a portion of nationwide claims brought by home sellers. NAR’s agreement would end a litigation of claims brought on behalf of home sellers related to broker commissions and preserve consumer choice and protect members.

The agreement would resolve claims against NAR, over one million NAR members, all state/territorial and local REALTOR® associations, all association-owned Multiple Listing Services (this includes the Greater Lehigh Valley Multiple Listing Service), and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below.

And you may have seen a lot of chatter in the news and on social media, in addition to attempts to interpret what all this means. To cut through the noise, we’ve compiled the resources and information that matters to you and your clients – right now.

Pennsylvania added buyer agency to its licensing statute in 1999 and has had buyer agent documents and forms in place since then. Multiple forms allow listing agents and buyer agents to explain their value to clients and to negotiate fees among the various players in a transaction. Staff and leadership at the Pennsylvania Association of REALTORS® feel confident in their ability to help members and consumers in this time of transition.

PAR has created a task force to evaluate all the standard forms relating to agency and compensation. As changes are expected to be implemented in July, look for updated forms to be released this summer.

PAR has published a resource on PARealtors.org that includes frequently asked questions for REALTORS® and consumers. PAR will notify members when additional answers are posted. If you did not watch the video from PAR’s Chief Legal Officer Hank Lerner, please do so to understand how the proposed settlement will impact Pennsylvania REALTORS®.

GLVR staff works closely with PAR staff. Rest assured that changes made at the state level in any form will be heavily communicated to you at the local level.

A reminder that the agreement is currently proposed and requires approval by a Federal court. This process is expected to take several months. Nothing is changing today, tomorrow, or even the next day.

Staff and leadership at the Greater Lehigh Valley REALTORS® are poised to help its membership with whatever the future may hold. Your association has a robust marketing plan in place that can be adjusted, as needed, to continue to show the worth of using a REALTOR®. The Greater Lehigh Valley Real Estate Academy can and will offer classes and workshops to cover any topic our members need further education on. And, if the agreement is approved and changes are mandated, our staff, leadership, Board of Directors, and large group of committee volunteers are at the ready to ensure our REALTORS®, our association, and our MLS are in compliance.

Congresswoman Susan Wild on April 1 met with association staff and leadership, including members of the Board of Directors and Government Affairs Committee, to discuss the proposed settlement agreement. We thank Congresswoman Wild for taking the time to speak with local REALTORS® and leaders about the future of the real estate industry.

    Q: Are REALTORS® who deal in commercial real estate covered under the terms of the agreement? 

    • The settlement does not distinguish between REALTORS® who deal in commercial real estate from those who work in residential real estate.
    • If you are an NAR member, you are covered by the settlement unless:
      • You are an employee of: At World Properties, LLC; Compass, Inc.; Douglas Elliman, Inc.; Douglas Elliman Realty, LLC; eXp Realty, LLC; eXp World Holdings, Inc.; Hanna Holdings, Inc.; HomeSmart International, LLC; Howard Hanna Real Estate Services; Keller Williams Realty, Inc.; Real Broker, LLC; The Real Brokerage, Inc.; Realogy Holdings Corp.; Realty ONE Group, Inc.; Redfin Corporation; RE/MAX, LLC; United Real Estate; or Weichert, Realtors® OR
      • You are an independent contractor or employee associated with HomeServices of America or one of its affiliates.

     Q: What do these practice changes mean for commercial practitioners?  

    • The proposed settlement agreement—like the Sitzer-Burnett lawsuit and the copycat lawsuits—is focused on residential real estate transactions. That means most commercial transactions will not be affected.
    • In many markets, commercial listings appear in commercial information exchanges (CIEs) and not multiple listing services (MLSs), and do not include an offer of compensation.
    • The settlement prohibits offers of compensation on the MLS and requires MLS participants working with buyers to enter into written agreements with their buyers. These practice changes will go into effect around late July.

    Commercial practitioners can get more resources at commercial.realtor.

      REALTORS® are still worth it, and you — the membership — should continue to positively promote the importance of utilizing a REALTOR® during real estate transactions! To do this, check out the Settlement Agreement Facts Toolkit available at facts.realtor.

      In addition to sharing the facts about the proposed settlement, the membership is encouraged to utilize social media assets that can be shared with their networks. You can find sample social media copy (text) and creative (graphics) within the Settlement Agreement Facts Toolkit.

      For additional content to promote beyond the settlement agreement, visit ThatsWhoWeR.realtor to view NAR’s consumer campaign ads. The campaign demonstrates the expertise of REALTORS® helping their clients navigate the risks, pitfalls, and complexities of buying or selling a home or property, reinforcing their expertise, commitment, and consumer-first approach.

      Please utilize the reliable resources available to you and help spread the word that working with a REALTOR® is worth it.