As we work together to understand and implement the changes required by the preliminarily approved NAR settlement, we’re committed to equipping you with the tools you need to succeed. Bookmark this page now and check back frequently.
The NAR Settlement went into effect on August 17, 2024.
What this Means for You
Here are few reminders of actions that are required to obtain a release of liability and protect your organization from claims related to broker commissions:
NAR recommends all MLSs implement practice changes by August 17, 2024. REALTOR® MLSs (those owned exclusively by one or more REALTOR® Member Boards) must implement the changes by this date to remain in compliance with NAR policy.
Offers of compensation are prohibited on MLSs. Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals.
REALTORS® working with a buyer must enter into a written agreement before touring a home.
What You Should Do Right Now
1. Watch the MAR Virtual Town Hall:
MAR hosted a virtual Town Hall on July 29, 2024 to keep you informed about these significant changes and to review essential resources, including new and updated forms. Watch the session now:
2. Familiarize Yourself with our Updated and New Forms and Download Our Support Materials:
New and updated forms have been sent to the forms providers. To access them, go to the MAR forms library. Please note it could take several days for the new forms to populate.
Preview the Forms:
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Contract to Purchase Real Estate – #501
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Standard Purchase & Sale Agreement – #503
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Exclusive Buyer Agency Agreement – #701
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Exclusive Right to Sell Listing Agreement – #709
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Cooperating Compensation Agreement – #311
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Addendum – Authorization to Offer Buyer Broker Compensation
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Disclosure – Existing Exclusive Right to Sell Listing Agreement
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Disclosure – Existing Exclusive Buyer Agency Agreement
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Disclosure – Unrepresented Buyer – #722
Access the Forms:
MAR members can access Remine Docs+ through their MLS login.
(The updates were also included in the Land and Condominium Purchase & Sale Agreements, Exclusive Buyer Agency Agreements with Consent to Dual and/or Designated Agency, Exclusive Right to Sell Listing Agreements with Consent to Dual and/or Designated Agency, Non-Exclusive Listing Agreement and Facilitation Agreements.)
| Content | Summary |
|---|---|
Unrepresented Buyer Disclosure:This form is critical in ensuring transparency and clarity in real estate transactions involving buyers who are not represented by a real estate agent. Its key purposes are to inform unrepresented buyers and protect listing brokers from potential liability. | |
Listing Agreements:The updated Exclusive Right to Sell Listing Agreement clarifies the duties and representations of both the Listing Broker and the Seller. It includes clear disclosures that commissions are negotiable, and introduces a new method for negotiating broker compensation. | |
Listing Agreements:The updated Exclusive Right to Sell Listing Agreement clarifies the duties and representations of both the Listing Broker and the Seller. It includes clear disclosures that commissions are negotiable, and introduces a new method for negotiating broker compensation. | |
Buyer Agreements:The updated Exclusive Buyer Agency Agreement is designed to offer more choice for the professional and the client, not only in terms of scope of services, but ultimately in agreeing on compensation for those services. | |
Purchase Contracts:The updated Contract to Purchase form now includes an option to negotiate the buyer broker’s fee as part of the offer. As these payments may come from the seller, the buyer, or through cooperative compensation, this optionality is now included in the Purchase and Sale Agreement. |
3. Bookmark this Page and Check Back Frequently.
An Overview of the Changes
Resolves claims against NAR, over one million NAR members, all state/territorial and local REALTOR® associations, all association-owned MLSs, all brokerage entites with an NAR member as principal with residential transaction volume in 2022 of $2 billion or below.
NAR has agreed to put in place a new rule that prohibits offers of compensation on the MLS.
The Settlement provides that MLS participants working with buyers must enter into written agreements with those buyers.
Under the terms of the Settlement, NAR would pay $418 million over approximately four years and NAR’s membership dues for 2024 and 2025 will not change because of this payment.
Additional Resources
FAQs related to Massachusetts:
Consumer Guide:
As of August 17, 2024, you will be asked to sign a written buyer agreement after you’ve chosen the professional you want to work with.
As of August 17, 2024, many real estate professionals nationwide will be asking buyers to enter into a written agreement prior to touring a home. But …
REALTORS® abide by NAR’s Code of Ethics. This obligation means that a REALTOR® cannot make decisions or provide representation in a way that puts …
Veterans and active servicemembers often have unique needs when looking for a home, and REALTORS® are committed to helping ensure those needs continu…
An offer of compensation is when you—the seller—or your agent compensate another agent for bringing a buyer to successfully close the transaction.…
Homebuyers interview agents and negotiate written agreements that includes the services the agent will provide and the compensation they will receive.
Additional Resources:
Intended for reference, Facts.realtor will help provide background on current events related to NAR and give you the tools to talk about them.
Answers about NAR’s Settlement, including key terms, who is covered, practice changes, and NAR operations, in English and Spanish.
Check out this video series which examines various aspects of the NAR Settlement agreement and provides answers to commonly asked questions.
Share the facts about the Settlement with NAR’s social media assets.
This information can assist you in communicating the truth to clients: REALTORS® are experts at helping consumers navigate the complexities of home p…
These resources for buyers outline what to expect after Aug. 17 and the value agents who are REALTORS® provide to consumers in these transactions.
These resources for sellers outline what to expect after Aug. 17 and the value agents who are REALTORS® provide to consumers in these transactions.
Reference this script to confidently address client inquiries about the NAR Settlement and build trust in every conversation.
The Path Forward: Key Dates
