REcolorado and the NAR Settlement
The team at REcolorado has been pouring over legal documents, speaking with our legal team, connecting with industry experts, and listening to our customers to interpret what the preliminary NAR settlement means for REcolorado, our subscribers, and our specific market. We strongly believe in being a business partner with the agents, brokers, and appraisers who use our service. For us, that means communicating clearly, openly, and immediately – sharing what we know when we know it!
Key aspects of the settlement include:
- A new rule will be put in place by NAR that prohibits offers of compensation on the MLS. Offers of compensation will no longer be permitted in any area of the MLS, which includes fields, written remarks, etc. Because this information is no longer collected, it will not be available in data feeds that are used by technology providers or portals.
- The proposed NAR settlement stipulates that a written agreement needs to be in place with a buyer before the buyer tours any property. The agreement must disclose the amount or rate of compensation. This amount may not be open-ended. For example, it can’t indicate “…whatever the listing broker is offering.”
- A disclosure must be presented to buyers and sellers that indicates broker commissions are not set by law and are fully negotiable.
- Sellers may offer buyer concession on an MLS (e.g. closing costs) so long as such concessions are not limited to or conditioned on the retention of or payment to a cooperating broker, buyer broker, or other buyer representative.
News and Resources
- Why it Matters Podcast with REcolorado: Unpack the NAR Settlement
- HousingWire: MLSs, local associations help members navigate changes tied to NAR settlement
- NAR Settlement Agreement
- Department of Justice Statement of Interest
- NAR: Competition.Realtor
- NAR: The Facts for Realtors
- Council of Multiple Listing Services: Amicus brief related to DOJ Statement of Interest in Nosalek v. MLS PIN
- Video Podcast: Shelly Vincent and Eric Sachs Discuss the Proposed Settlement from NAR
- Inman: Motion of Northwest MLS for Leave to File Amicus Curiae Brief
- NAR: Settlement Timeline