What does NAR’s new settlement mean for real estate professionals?

You’ve probably seen the headlines: The National Association of Realtors has reached a $52.25 million settlement.

Another commission lawsuit. Another large number.

Unfortunately, NAR has once again not been clear about what this means for you, the individual agent sitting at the kitchen table, so let’s fix that. Here’s what this settlement means in plain language, why it matters, and what, if anything, it will change about the way you do your job.

What is this settlement?

NAR agreed to settle a so-called case Tuccori v. At World Propertiescontributing $52.25 million to a fund that resolves homebuyer claims. The argument made by buyers is essentially the same as that made by sellers in the US Sitzer-Burnett case: The way commissions worked in real estate was costing them more money than necessary. NAR has denied wrongdoing throughout the lawsuit, but agreed to contribute to a resolution.

The settlement still needs a judge to approve it. A final hearing is scheduled for July 28, so this hasn’t officially happened yet.

What makes this different from the Burnett settlement?

Remember how many brokers and MLSs felt left out of the Burnett deal unless they paid separately to be covered? This one is built differently.

Any brokerage where a broker is the principal and who has not already been named in a buy-side lawsuit is included, with no minimum transaction volume requirements. State and local real estate agent associations are covered. Both NAR-affiliated MLSs and non-Realtor MLSs are covered. The latter group was not protected in the Burnett settlement, and that omission caused much frustration at the time.

Congratulations NARs CEO Nykia Wright and her legal team. The Burnett settlement caused real chaos for members under the previous NAR leadership. Brokers and MLSs were left out because they didn’t know where they stood, and many had to pay separately to be insured.

This arrangement does the opposite. It’s built to protect more people, more broadly, with no transaction volume requirements and no additional hoops to jump through. That’s not an accident. That’s a legal team that actually fought for membership, and it deserves recognition. Broader protection means more stability for the professionals building their businesses within this sector. That matters.

Does this change the way you practice?

The answer is no. This settlement does not introduce any new rules. The practice changes that came into effect on August 17, 2024 are still the standard, and this settlement simply requires continued compliance with those same changes. Nothing new is added.

As a reminder, this is what these changes require:

• Buyers and sellers should be clearly told that commissions are not legislated. You can set your fee and stick to it; you just need to make it clear that your fee is not legally established. It is the individual business decision of each individual agent and/or broker as to what fee to charge.
• A written buyer representation agreement must be in place before showing a buyer a property. The only exception to this is when a buyer attends an open house and is not represented.
• Compensation should be discussed in advance, not after the relationship has already begun.

If you adjusted your practice when those rules came out in 2024, you are already doing everything that these regulations require. Nothing about your daily changes.

What this means for you right now

The biggest legal threat on the buy side is looming

If this settlement receives court approval in July, the most significant open case against the broader industry will be behind us. Agents have been operating under a cloud for two years. That cloud is starting to lift.

The buyer’s agreement is not a temporary inconvenience. It’s the new normal

Some officers are still waiting for things to go back to the way they were. They’re not going to do that. The written buyer’s agreement, the value conversation in advance, the compensation conversation before the first viewing: that is exactly how real estate works now. The officers who have become familiar with it are already ahead of the officers who have not.

Your brokerage is probably protected

If your agent has a broker as a principal and has not been named in a buy-side lawsuit, you are most likely covered under this settlement. That’s real peace of mind for officers who were quietly worried about where they stood legally.

What buyers think about commissions is still your problem to solve

For two years, headlines told buyers they were paying too much. A settlement does not ring the bell. If you are sitting across from a buyer and they bring up commissions, no court decision can be the explanation for you. That conversation belongs to the agent in the room, and how you handle it will build trust or cost you the relationship.

Another thing to keep an eye on

The attorneys behind a separate set of buyer cases called the Batton cases have been actively fighting to prevent brokers from joining the Tuccori settlement because the lawyers want to take down our members. NAR keeps a close eye on this.

If these objections gain traction, it could push back the timeline. July 28 is the date that matters. Until then, it’s still a proposed settlement awaiting the judge.

Here’s what you really need to take away from all of this: The industry is moving toward a solution. The rules won’t change again. Your brokerage is probably protected. And the conversation with your buyers about value and compensation is still squarely on your shoulders.

The latter is actually the good news, even if it doesn’t always feel that way. Because the agents who know how to have that conversation confidently and clearly are the ones who will build the strongest businesses in this new environment.

The legal chapter is closed. What you do with it from here is up to you.