What the Litigation Concerned
Antitrust claims challenged the longstanding practice under which a home seller paid both their own agent and the buyer agent, with the buyer agent share advertised on the multiple listing service where properties are listed.
The allegation was that this structure inflated commissions by removing negotiation. Buyers did not pay their agent directly so had little reason to negotiate the rate, while sellers faced pressure to offer a competitive buyer agent share to attract showings.
The issue was the structure, not the rate
Nothing prohibited negotiating commissions before. The claim was that advertising the buyer agent share on the listing service, combined with rules requiring an offer of compensation, created conditions where rates converged rather than competed.
What Changed
Compensation offers to buyer agents can no longer be displayed on multiple listing services. Removing that display is intended to make the buyer agent share a matter of negotiation rather than an advertised standard.
Buyer agents must now enter a written agreement with a buyer before touring homes, specifying how much the agent will be paid and by whom. That converts an arrangement most buyers never saw into an explicit negotiated term.
Sellers may still offer to contribute toward buyer agent compensation, but it is negotiated separately rather than advertised through the listing service.
What This Means Practically
Buyers now agree their agent compensation upfront and may be responsible for it directly if the seller does not contribute. That makes the written agreement the single most important document to read carefully before signing.
Sellers negotiate their own agent commission and separately decide whether to offer any buyer-side contribution, which is now a distinct commercial decision rather than a default expectation.
Commissions are negotiable, and now visibly so
Both sides of the commission are open to negotiation, and the rule changes make that explicit rather than assumed. Ask for the rate in writing, ask what services it covers, and compare between agents before signing anything.
Free Legal Evaluation
Do You Qualify to File a Claim?
Our network of verified plaintiff attorneys offers free, no-obligation case evaluations. Contingency fee representation means you pay nothing unless you win.
NAR Settlement: How the Real Estate Commission Rules Changed: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What did the NAR litigation concern?
Antitrust claims that advertising buyer agent compensation on listing services, combined with rules requiring an offer, inflated commissions by removing negotiation.
What changed for buyers?
Buyer agents must enter a written compensation agreement with the buyer before touring homes, making the rate an explicit negotiated term.
What changed for sellers?
Compensation offers can no longer be displayed on listing services, and any contribution to buyer agent costs is negotiated separately.
Are commissions now lower?
The rules changed the structure rather than setting rates. Whether individual commissions fall depends on negotiation, which is now more explicit for both sides.
What should I do before signing with an agent?
Get the rate in writing, confirm what services it covers, and compare between agents. Both sides of the commission are negotiable.
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.