The NAR Commission Settlement: What Changed for Agents and What It Means in 2026

Why This Settlement Reshaped How US Agents Get Paid

In October 2023, a federal jury in Missouri (the Sitzer/Burnett case, part of the broader Moehrl litigation) found that the National Association of Realtors and several major brokerages had conspired to inflate buyer's agent commissions through MLS cooperative compensation rules. NAR settled the resulting litigation in March 2024, agreeing to pay $418 million in damages and to change its policies nationwide. The practice changes took effect August 17, 2024, and are now standard practice across MLSs as of 2026.

The Two Rule Changes That Matter Most

1. No More Compensation Offers on the MLS

Sellers' agents can no longer list buyer-agent compensation on the MLS. Previously, a seller's agent would advertise (via the MLS) how much they were offering to pay a buyer's agent, which NAR's settlement found discouraged commission negotiation. Now, compensation for the buyer's agent is negotiated separately, off the MLS, between the buyer and their own agent.

2. Written Buyer Representation Agreements Are Required

Before touring a home, a buyer's broker must now have the buyer sign a written buyer representation agreement. That agreement must:

• Specify the amount or rate of the buyer's agent's compensation, and how it's determined (flat fee, hourly, or percentage)
• State that compensation is not tied to or capped by what any other party (like the seller) might offer
• Include a clear, conspicuous statement that commissions are not set by law and are fully negotiable

What Has NOT Changed

• Seller-paid commission remains fully negotiable. A seller can still choose to offer compensation toward a buyer's agent at listing time or during negotiation — it's just no longer broadcast on the MLS.
• Commission rates were never fixed by law before the settlement, and they still aren't — what changed is the process and disclosure, not a government-mandated rate.

What This Means for Agents Working in 2026

1. Always use a written buyer representation agreement before showing property — this is now a settlement-driven requirement enforced through MLS participation rules, not optional best practice.
2. Be ready to have a direct compensation conversation with buyers early — buyers may now be responsible for paying their own agent if the seller doesn't offer concessions.
3. Train your CRM and intake workflow around capturing signed buyer agreements before the first showing — see our CRM comparisons for tools that support e-signature and document workflows.
4. Disclose, don't assume — every MLS participant must affirmatively tell buyers and sellers that commissions are negotiable, not just imply it.

Where to Verify the Current Rules

Settlement terms and MLS-level implementation can be refined over time. Always check the authoritative source before advising clients:

Sources:

• What the NAR Settlement Means for Home Buyers and Sellers — NAR
• NAR Settlement FAQs — NAR
• The Future of Realtor Commissions: Understanding the NAR Settlement — APS Law
• Moehrl v. National Association of Realtors — Cohen Milstein

This article is for general informational purposes and is not legal advice. Consult your broker, MLS, or legal counsel for guidance specific to your market.