Real Estate Commissions After the NAR Settlement

Real estate commissions did not become fixed or newly negotiable because of the NAR settlement. They were negotiable before it and remain negotiable now. What changed is how offers of buyer-broker compensation are handled in covered MLS systems and when an MLS participant working with a buyer must have a written agreement.

That is the starting point for any honest discussion of commissions after the settlement. The seller does not automatically owe a buyer broker a set percentage. The buyer does not automatically pay the entire fee out of pocket. The parties choose services, negotiate compensation, and put those terms in writing.

From the Burnett verdict to the approved settlement

On October 31, 2023, the jury in Burnett found NAR and several brokerage defendants liable under antitrust law and awarded $1.785 billion before statutory trebling. NAR later negotiated a broader settlement, announced on March 15, 2024, under which it agreed to pay $418 million over approximately four years and make specified 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. The court granted final approval on November 26, 2024.

The Eighth Circuit affirmed that approval on August 19, 2026. Rehearing requests were denied on September 24, 2026, and the court issued its mandate on October 2, 2026. As of October 2026, the settlement and its practice changes remain in effect, although a request for U.S. Supreme Court review was still legally possible when this article was updated.

How compensation works now

The buyer's agreement sets the ceiling

The written buyer agreement must describe compensation in an objective way, such as a stated amount, rate, or hourly charge. It cannot say the broker will accept “whatever the seller offers.” It must also state that broker fees and commissions are negotiable and not set by law.

The agreed amount is a ceiling on what the buyer broker may receive from all sources for the covered services. If the buyer and broker agree to a fee and the seller or listing firm pays part of it, the agreement determines whether the buyer owes a difference. If the outside payment would exceed the agreed amount, the broker cannot simply collect the extra.

Seller payment is still an option

The settlement removed compensation offers from the MLS; it did not ban them. A seller can authorize an off-MLS offer or respond to a buyer's request for payment toward the buyer broker's fee. The listing firm must disclose the offer to the seller and obtain the seller's approval.

For a seller, the useful number is net proceeds. Price, repairs, closing-cost requests, timing, financing, and any compensation request all affect that result. For a buyer, the useful number is total cash and financing required to close. Commission decisions belong inside those calculations.

What the settlement did not do

• It did not prohibit pocket listings. NAR's Clear Cooperation Policy is a separate MLS policy.
• It did not take away agents' licenses, MLS access, ability to show property, or ability to prepare transaction documents.
• It did not make every licensed real estate agent a NAR member. REALTOR® identifies a NAR member; it is not another word for every licensee.
• It did not establish that the same rule applies to every person based on the state where they live. Coverage and obligations depend on the settlement, the MLS, brokerage participation, and applicable law—not a list of “affected” and “unaffected” states.
• It did not guarantee that commissions or home prices would fall by a particular amount.

North Carolina adds its own agency rules

North Carolina Commission Rule 21 NCAC 58A .0104 already governed agency agreements. Before the settlement practice changes, a buyer could work under an oral buyer-agency agreement until no later than the time an offer was made, unless the terms required a written agreement from the beginning. The MLS rule now requires a written agreement before a covered home tour.

In the Raleigh-Durham Triangle, Doorify MLS removed compensation fields and related data on August 6, 2024. Doorify permits compensation discussions outside the MLS and requires written buyer agreements before covered tours. North Carolina REALTORS® also revised its buyer-agency forms to address the settlement terms.

The result is not a new standard fee. It is a more explicit conversation at the start: who the broker represents, what services the broker will provide, how long the agreement lasts, how the broker will be paid, and what the client may owe.

Clear commission terms with the Tim M. Clarke Team

Tim has been licensed for 18 years, and our team has handled commission conversations through changing markets and changing forms. The Tim M. Clarke Team, The Jim Allen Group | Coldwell Banker HPW, explains compensation before it becomes a surprise in an offer or at closing.

For buyers, we define the services, fee, potential seller contribution, and any remaining obligation before private tours. For sellers, we compare offers by net result and discuss whether an off-MLS compensation strategy fits the property. The terms are written, the choices belong to the client, and no commission is presented as standard.

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
• Doorify MLS: settlement practice changes