What the NAR Settlement Means for North Carolina Real Estate

The National Association of REALTORS® settlement changed two parts of a residential real estate transaction: where an offer of buyer-broker compensation can appear and when many buyers must put an agreement with their broker in writing. It did not set commission rates, ban seller-paid buyer-agent compensation, outlaw pocket listings, or require every licensed broker to join NAR.

Those distinctions matter in North Carolina. Our state already had agency rules for brokers and buyers. The settlement added an earlier written-agreement requirement for brokers working with buyers under covered MLS rules, while local MLS systems removed compensation offers from their platforms.

The NAR settlement, without the myths

The case commonly called Sitzer/Burnett or Burnett challenged NAR's Cooperative Compensation Rule and related brokerage practices. On October 31, 2023, a federal jury found NAR and several brokerage defendants liable and awarded $1.785 billion in damages before statutory trebling.

NAR announced a proposed nationwide settlement on March 15, 2024. It agreed to pay $418 million over approximately four years and adopt practice changes. Judge Stephen R. Bough of the U.S. District Court for the Western District of Missouri granted preliminary approval on April 23, 2024. The practice changes took effect on August 17, 2024, and the court granted final approval on November 26, 2024.

The settlement is not a finding that every broker, brokerage, MLS, or transaction followed the same practices. NAR denied wrongdoing in the settlement. The clean way to describe the result is narrower: a jury returned an antitrust verdict, the parties later settled broader commission litigation, and the approved settlement changed specified MLS and buyer-agreement practices.

Where the appeals stand

As of October 2026, the settlement remains in force. The U.S. Court of Appeals for the Eighth Circuit affirmed final approval on August 19, 2026. The court denied rehearing requests on September 24, 2026, and issued its mandate on October 2, 2026. A request for U.S. Supreme Court review remained legally possible when this article was updated, so the accurate statement is that the Eighth Circuit appeals are complete—not that every possible avenue of review has expired.

What changed on August 17, 2024

The settlement did not create a standard commission. Broker fees were negotiable before the settlement and remain negotiable. It changed the mechanics around compensation and written buyer agreements.

What did not change

• Commissions are not fixed by NAR or by law. Buyers, sellers, and their brokers negotiate compensation.
• A seller may still agree to pay some or all of a buyer broker's compensation. The offer just cannot be communicated through a covered MLS.
• A buyer may purchase without buyer representation. An unrepresented buyer should understand that the listing agent represents the seller unless a different agency relationship is created and disclosed.
• The settlement did not prohibit pocket listings. NAR's Clear Cooperation Policy and local MLS rules address how publicly marketed listings are submitted to an MLS; that is a separate policy issue.
• A real estate license does not make someone a REALTOR®. REALTOR® is NAR's membership mark. Not every licensed North Carolina broker is a NAR member.

How North Carolina agency law fits

North Carolina did not start from a blank page. Commission Rule 21 NCAC 58A .0104 already required agency agreements and controlled when those agreements had to be written. A listing agreement had to be written when the agency relationship was formed. A buyer-agency agreement could begin orally, but it had to be reduced to writing no later than the time an offer was made. An agreement that bound a buyer for a period of time or restricted the buyer's ability to work with another broker had to be written from the start.

The settlement-era MLS rule moved the practical deadline forward for covered residential tours. If an MLS participant is working with a buyer, the written agreement must be in place before the buyer or broker enters the home for an in-person or live virtual tour. North Carolina REALTORS® explains that the state's buyer-agency forms can satisfy both the state rule and the MLS requirement when completed correctly.

That does not mean every conversation requires a representation contract. A consumer can ask an agent about services. A buyer attending an open house may tour without signing a buyer agreement with the listing agent when that agent is working only for the seller. Agency disclosure duties can still arise at first substantial contact under North Carolina rules.

What Doorify MLS changed in the Triangle

Triangle MLS now operates as Doorify MLS. Doorify removed compensation fields from its MLS services on August 6, 2024 and prohibited compensation offers anywhere in the MLS, including remarks, photos, and attachments. Doorify also requires a written agreement before a participant working with a buyer provides a tour of an MLS listing.

Compensation did not disappear. It moved outside the MLS. Brokers can discuss it directly, and sellers and listing brokers can negotiate an off-MLS payment toward the buyer broker's fee. The buyer's own agreement still controls the maximum amount the buyer broker may receive.

What North Carolina buyers should expect

Before we tour homes with a buyer under the applicable MLS rules, we discuss the representation agreement, the services we will provide, the agreement's duration, how it can end, and the compensation terms. The amount must be stated clearly. “Whatever the seller offers” is not an acceptable compensation term.

The agreement also identifies the buyer's potential responsibility. If the agreed fee is not fully covered by a payment from the seller or listing firm, the buyer may owe the difference. That possibility should be addressed before showings, not discovered while writing an offer.

A seller's willingness to contribute can be negotiated. It may be documented through a separate compensation agreement or addressed as part of the transaction with the lender and closing attorney involved. The structure has to fit the buyer-agency agreement, the purchase contract, loan rules, and North Carolina law.

What North Carolina sellers should decide

A seller chooses the compensation arrangement with the listing firm and decides whether to authorize an off-MLS offer or negotiate payment toward the buyer broker's fee. There is no automatic answer that fits every property.

The decision belongs in the pricing and offer strategy. A buyer may have agreed to pay a broker and may ask the seller to cover part or all of that cost. The seller can accept, reject, or counter that request along with the other terms. Our job is to show the seller the net result and the tradeoffs without treating any commission as standard.

The settlement also requires clear seller approval before a listing broker or seller makes an offer of compensation to another broker. That is a disclosure and consent issue, not a ban on cooperation.

Questions to settle before a showing or listing

For buyers

• What services are included, and for how long?
• How is the broker compensated, and what is the maximum amount?
• Can the seller or listing firm pay toward that amount?
• What happens if the outside payment is less than the agreed fee?
• How can the agreement be ended?

For sellers

• What will the listing firm charge for its services?
• Will the seller authorize an off-MLS offer toward buyer-broker compensation?
• How will requests in an offer affect the seller's net proceeds?
• How will the listing firm communicate any authorized offer without using the MLS?

Put the new rules to work with the Tim M. Clarke Team

The settlement changed forms, timing, and MLS displays. It did not replace the need for skilled representation. We explain the agreement before the first private tour, confirm compensation in writing, and build each offer or listing strategy around the client's actual numbers.

Tim has been licensed for 18 years. The Tim M. Clarke Team, The Jim Allen Group | Coldwell Banker HPW, represents buyers and sellers across the Raleigh-Durham Triangle with a direct approach: clear agency, clear compensation, and no invented “standard” fee. If you want to see how the rules apply to your move, we can work through the choices before they become contract terms.

Sources

• U.S. District Court for the Western District of Missouri: Burnett case page and orders
• U.S. Court of Appeals for the Eighth Circuit: August 19, 2026 opinion
• NAR: What the settlement means for buyers and sellers
• North Carolina Real Estate Commission: Buyer Agency Agreements
• NC REALTORS®: Written buyer agreements and MLS policy
• Doorify MLS: settlement practice changes