NAR Settlement Resources & Changes

June 28, 2024
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LAST UPDATED: 7/15/24

The NAR settlement goes into effect August 17th, but REALTORS should prepare in advance to ensure you are adhering to the settlement terms by 8/17.   Please revisit this page regularly as updates will be added as swiftly as we receive them.  

DISCLAIMER: The information below is the best we have at present but may change as updates are received from NAR or WRA.  Please contact your attorney for qualified legal guidance, or contact WRA Legal Hotline with questions.  

UPDATE 7/15/24:

UPDATES 7/10/24: 

ACTION ITEMS (Implement prior to Aug 17):  

  • Revoke standing policy letters and/or blanket compensation agreements before 8/17 since as of 8/17, sellers must agree in writing prior to any offers of compensation made to cooperating firms
  • WB Forms for listings, offers, and buyer/tenant rep agreements will be updated and added soon to zipForms:  7/1 optional use date & 8/15 mandatory use date 
    • For existing listing contracts and buyer agency/tenant representation agreements, WRA is working on a disclosure that can be provided to comply with the NAR settlement terms
  • Plan ahead for the removal (ETA 8/15) of all commission/compensation fields from GNMLS
    • See NAR Settlement FAQs for guidance regarding Offers of Compensation, Listing or Buyer Agreements, Concessions, etc
    • Concessions can still be offered by seller directly to buyer, but Concession fields in MLSs may not be used to communicate offers of compensation nor conditioned upon payment to buyer's agent or firm
    • NO workarounds permitted within any MLS fields including (but not limited to) remarks, photos, supporting docs, hyperlinks, etc - nor any MLS faculties (eg: SentriLock, ShowingTime, etc)
    • Remove any compensation/commission info from any locations where it is commingled with data received via GNMLS (IDX/RETS feed, CoreLogic Trestle feed, etc)
      • Firms or agents may create a webpage or list, social media posts, or use signage to provide details of compensation offers for your listings
  • As of August 17, 2024, a firm and a buyer can still be in pre-agency, but must have a written agreement documenting the pre-agency
    • WRA is preparing a new "Pre-Agency Showing Form" (coming soon) that, as of 8/17, must be provided to potential buyers before touring a property
    • Disclosure to Customers form required when working with a "customer", i.e. serving a buyer as seller's agent or subagent
    • Buyer Agency Agreement required before providing "client" services to buyer; see WRA Buyer Agency consumer brochure for explanation of different types of agency
  • See WRA Legal Hottips Library category "Antitrust - Class-action Lawsuit" for more guidance on practice changes

 

MORE INFO:

NAR FACTS.REALTOR: Includes Comprehensive FAQs, Policy Changes, Timeline & Factsheet, Communication Toolkit & More

NAR SETTLEMENT FACTS VIDEOS

NAR "THE HUB" FORUM:  Real-time updates from NAR leadership

WRA ANTITRUST RESOURCES:  Last Updated 6/28 - added WI Real Estate Practice FAQs

WRA LEGAL UPDATE LIBRARY

WRA LEGAL HOTTIPS

WRA 6/24 LEGAL UPDATE LIVE VIDEO: Watch video & click here to take exam and earn 1 hour free CE credit (for Course 6)

 

MLS Policy Changes:

  • ALL commission fields will be removed from GNMLS on 8/15.  After 8/16, nowhere within GNMLS - nor any faculty of GNMLS - may convey offers of compensation or commissions
    • Do NOT circumvent by including compensation/commission info in any MLS fields, listings photos, supporting docs, hyperlinks, etc
    • Do NOT use SentriLock, ShowingTime or any other GNMLS partner platforms to convey commission/compensation info
  • Commission info for your firm's listings may be shared on your brokerage website, but not on GNMLS-provided Xposure agent pages
    • Commission info for your listings may be shared on a separate page, social media, or elsewhere but must be kept separate from any page or display of information received via data feed from GNMLS or any GNMLS faculty
  • Seller concessions to buyers are still allowed in GNMLS, but may not convey compensation/commission offers nor be predicated upon compensation to subagents or buyer’s agents
    • Concession field currently under consideration for possible removal by GNMLS Board of Directors
  • See NAR MLS Policy Change Summary (PDF)

 

Real Estate Forms:

  • See WRA Forms Update page for list & details of WB forms being revised
  • New disclosure forms for existing listing contracts, buyer agency & tenant representation will be added to zipForms soon
  • New "Pre-Agency Showing" form will be added to zipForms that, as of 8/17, must be provided prior to showings if buyer has not already agreed to Customer or Client (each of which have a separate form) agency
  • Updated WB forms for listing contracts, buyer agency, tenant representation, and offers to purchase will become optional use as of July 1st and mandatory use on August 15th

 

Cooperation & Co-Broke:

 

Seller Side:

  • Use updated WB listing contracts optionally July 1st and mandatory as of August 15th
    • Seller should agree in writing what (if any) compensation seller offers to buyer agents and/or seller subagents
    • Seller should agree in writing what (if any) concessions to offer to buyer.  Concessions may not be used to communicate offers of compensation nor conditioned upon payment to buyer's agent or firm
    • Pre-existing listing contracts, buyer agency & tenant rep agreements may be modified by disclosure that WRA will release soon
  • NAR Video: Window to the Law: How Seller Concessions Work

 

Buyer Side:

  • Use updated WB offers to purchase or buyer & tenant agency agreements optionally July 1st and mandatory as of August 15th - will include optional checkbox provision buyer can use to ask seller to pay buyer's firm's fee
    • In meantime, use existing Offer to Purchase to add such provision in Additional Provisions or by an addendum until revised offer forms released
  • Written agreements are required as of 8/17 prior to "working with" buyers prior to "touring a home"
    • Pre-Agency:  WRA is creating a new "Pre-Agency Showing Form" (name TBD - will add to zipForms) you may use during pre-agency if buyer has not agreed to Customer or Buyer Agency
    • Prior to drafting an offer (when pre-agency ends), buyers must decide whether to be Customer or Client
    • Customer:  Disclosure to Customers form should be signed by buyer if agreeing to customer (i.e. seller subagency) relationship
    • Client (Buyer Agency):  Use updated WB-36 Buyer Agency Agreement which WRA is updating to include 4 requirements:
      • Specific and conspicuous disclosure of the amount or rate of compensation the Participant will receive or how this amount will be determined, to the extent that the Participant will receive compensation from any source.
      • The amount of compensation in a manner that is objectively ascertainable and not open-ended.
      • A term that prohibits the Participant from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and
      • A conspicuous statement that broker fees and commissions are not set by law and are fully negotiable.
  • NAR Video: Window to the Law: When You Need a Written Buyer Agreement
  • NAR Video: Window to the Law: Terms of a Written Buyer Agreement
  • NAR Video: Window to the Law: SOP 16-16 and Requesting Buyer Broker Compensation
  • NAR Written Buyer Agreements 101