The Verdict
For decades, US home sellers typically paid a commission of around 5% to 6%, which was then split between the seller’s agent and the buyer’s agent — an arrangement critics said kept commissions high and hidden from buyers. In October 2023, a Missouri jury in the Sitzer/Burnett case found that the National Association of Realtors (NAR) and several large brokerages had conspired to inflate commissions in violation of antitrust law, and awarded about $1.8 billion in damages — a figure that could be tripled under antitrust rules, pushing potential exposure above $5 billion.
The core problem, the plaintiffs argued, was a rule effectively requiring a seller to offer to pay the buyer’s agent, which discouraged price competition on commissions.
The Settlement and the Changes
Facing that exposure, NAR agreed in March 2024 to a $418 million settlement, paid over about four years, which a court gave final approval later that year (and an appeals court upheld). More important than the money were the industry reforms: NAR can no longer maintain rules that let a seller’s agent set the buyer’s agent’s compensation, offers of buyer-agent commission were removed from the shared listing databases (the MLS), and buyers must now sign a written agreement with their agent spelling out how that agent is paid before touring homes.
The aim is to make commissions negotiable and transparent, potentially lowering costs over time.
What Buyers and Sellers Should Know
Commissions are now more openly negotiable. Sellers can discuss whether and how much to contribute toward a buyer’s agent; buyers should read the required buyer-broker agreement carefully, understand what they are agreeing to pay, and negotiate the rate and terms. Do not assume a standard percentage — ask agents to explain and compete on their fees. The settlement is meant to give consumers exactly this leverage.
Before You Act
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NAR Commission Lawsuit: The $418 Million Settlement: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What is the NAR commission lawsuit about?
Home sellers alleged that NAR and large brokerages conspired to keep real-estate commissions artificially high, largely through a rule that effectively required sellers to pay the buyer's agent. A 2023 jury found an antitrust violation and awarded about $1.8 billion.
How much did NAR pay and what changed?
NAR agreed to a $418 million settlement in 2024. The bigger effect is the reforms: no rule letting a seller's agent set the buyer's agent's pay, removal of commission offers from the MLS, and required written buyer-broker agreements before touring homes.
Are real-estate commissions negotiable now?
Yes — more openly than before. Sellers can negotiate whether to contribute to a buyer's agent, and buyers should read the buyer-broker agreement, understand what they will pay, and negotiate the rate rather than assume a standard percentage.
Legal Disclaimer
This article is general legal information, not legal advice, and does not create an attorney-client relationship. Case status, eligibility criteria, and any amounts described are as reported at the date shown and may change. Consult a licensed attorney in your jurisdiction about your own situation.