NAR Settlement Resources & Changes
LAST UPDATED 12/4/24: Adding several NAR Consumer & REALTOR Guides as they are released.
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.
ACTION ITEMS (Implement by Aug 17 or as noted):
- Revised & New Forms now available in zipForms and WRA Forms Library - 8/15 mandatory use date for updated WB forms
- CLICK HERE for summary of form updates & video walkthroughs of form & practice changes (WRA login req'd)
- Revoke standing policy letters and/or blanket compensation agreements since as of 8/17, sellers must agree in writing prior to any offers of compensation made to cooperating firms
- Existing listing contracts or buyer agency agreements (using pre-July 1st optional use date WB forms) should be provided the Compensation Disclosure for Wisconsin Agency Agreements (WRA-CD) to comply with settlement terms
- Amendment IS needed however if language in existing LCs includes language requiring offers of compensation in MLS or BA agreements stating "MLS offer of compensation" or "whatever listing firm is offering"
- Watch: https://www.youtube.com/watch?v=MHNqyaX65fc
- Plan ahead for the removal on 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
- Agents do not need to delete the data in those fields for current listings listing since these fields will be removed entirely.
- 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 locations where it is commingled with data received from GNMLS, with the following points of clarification:
- Firms or agents may create a webpage or list, social media posts, and/or signage providing details of compensation offers for your firm's listings
- NAR Settlement FAQ #42:
"42. Can a listing broker communicate offers of compensation on a broker website which has an IDX or VOW feed?"
Yes, MLS Participants may augment MLS data or data feeds with offers of compensation to buyer brokers or other buyer representatives for only listings of their own brokerage. - NAR Settlement FAQ #43:
"43. Can an MLS Participant use or share their MLS data or data feeds to establish or maintain a platform for offers of compensation from multiple brokers and buyer brokers or other buyer representatives?"
No, use of MLS data or data feeds to directly or indirectly establish or maintain a platform of offers of compensation from multiple brokers to buyer brokers or other buyer representatives is prohibited.
- As of August 17, 2024, written agreements are required if you are "working with" a buyer prior to "touring a home" (read the link for clarification)
- Summary video: https://www.youtube.com/watch?v=sbZIihgJB5M
- See NAR Consumer Guides:
- Written Buyer Agreements
- Open Houses & Written Agreements
- REALTORS' Duty to Put Client Interests Above Their Own
- What Veterans Need to Know About Buying a Home
- Offers of Compensation
- Negotiating Written Buyer Agreements
- Seller Concessions
- Multiple Listing Services
- Fair Housing
- Listing Agreements
- 10 Questions to Ask A Buyer's Agent
- 10 Questions to Ask a Seller's Agent
- Buying Your First Home
- Mortgages and Financing
- Steps Between Signing & Closing On a Home
- Agency & Non-Agency Relationships
- WRA created a new Pre-Agency Showing Agreement (WRA-PASA in zipForm) that must be provided to potential buyers during pre-agency before touring a property - and you cannot "negotiate" during pre-agency
- Watch: https://www.youtube.com/watch?v=emKLEkmifNo
- You cannot "negotiate" (eg: write an offer) during pre-agency - must then proceed to with either of the following forms after deciding upon type of agency
- WRA created a new Disclosure to Customers (WRA-BDCU in zipForm) that must be provided to potential buyer customers prior to "negotiating"
- Updated Buyer Agency Agreement (WB-36) required before providing client services as a buyer's agent
- Read NAR FAQs #55-74 for more info about written buyer agreements
- Review NAR Settlement FAQs and WRA Legal Hottips "Antitrust - Class-action Lawsuit" for add'l guidance on practice changes
- Consumers with questions about class action notices they receive should be directed to https://www.realestatecommissionlitigation.com/
MORE RESOURCES:
NAR FACTS.REALTOR: Includes Settlement FAQs, Policy Changes, Timeline & Factsheet, Communication Toolkit & More
NAR "THE HUB" FORUM: Real-time updates from NAR leadership
WRA ANTITRUST RESOURCES: Updated 11/5/24 - Added "A Buyer's Guide to Written Buyer Agreements"
WRA 8/7 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
- Read NAR FAQs #27-46 (and particularly #42-43) for clarification re: Offers of Compensation
- We are awaiting clarity from NAR, but at present we advise against commingling GNMLS-sourced listing data or listing detail pages in online locations other than for your own listings on your firm's website (per NAR FAQ #42)
- 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:
- Revised WB & New Forms now available in zipForms and WRA Forms Library: 8/15 mandatory use date (WB forms)
- CLICK HERE for summary of form updates & video walkthroughs of form & practice changes (WRA login req'd)
- 18 revised WB forms including WB-1 Residential Listing Contract, WB-36 Buyer Agency Agreement, WB-11 Residential Offer to Purchase
- Other new/updated forms:
- Pre-Agency Showing Agreement (WRA-PASA)
- Disclosure to Customers (WRA-BDCU)
- Compensation Agreement (WRA-CA)
- Compensation Disclosure for Wisconsin Agency Agreements (WRA-CD)
Cooperation & Co-Broke:
- Blanket compensation agreements and standing policy letters must be rescinded prior to 8/17 as the NAR settlement terms require a seller’s prior written agreement for offers of compensation to cooperating firms
- NAR & WRA Videos:
- NAR Broker-to-Broker Agreements 101
- Understanding & Navigating Upcoming Practice Changes - A Guide for Real Estate Professionals
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
- Concessions field currently under consideration for modification/removal by GNMLS Board
- NAR Video: Window to the Law: How Seller Concessions Work
- Pre-existing listing contracts, buyer agency & tenant rep agreements may be modified using Compensation Disclosure for Wisconsin Agency Agreements (WRA-CD)
- See: https://www.youtube.com/watch?v=MHNqyaX65fc regarding existing LCs and BA agreements drafted on old WB forms (prior to the 7/1 optional, 8/15 mandatory forms)
- Amendment IS needed however if language in existing LCs includes language requiring offers of compensation in MLS or BA agreements stating "MLS offer of compensation" or "whatever listing firm is offering"
- NAR Consumer Guides for Sellers:
- NAR Settlement Facts for Home Sellers: https://www.nar.realtor/the-facts/home-sellers-what-the-nar-settlement-means
- NAR Member Resource: DOs and DONTs When Working With Sellers
Buyer Side:
- Use updated Offer to Purchase or Buyer & Tenant Agency Agreement WB forms (mandatory use Aug 15) that includes optional checkbox buyer can use to ask seller to pay buyer's firm's fee
- Written agreements are required as of 8/17 if you are "working with" a buyer prior to "touring a home" (read the link for clarification)
- Pre-Agency: WRA created Pre-Agency Showing Agreement (WRA-PASA) to use before touring a home if buyer has not agreed to Customer or Buyer Agency
- Prior to any "negotiating" (eg: drafting an offer) is when pre-agency ends, so buyers must decide whether to be customer or client
- Customer: Disclosure to Customers (WRA-BDCU) should be signed by buyer if agreeing to customer (i.e. seller subagency) relationship
- Client (Buyer Agency): Use updated Buyer Agency Agreement (WB-36) which includes 4 new 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 Consumer Guides for Buyers:
- Written Buyer Agreements
- Open Houses & Written Agreements
- REALTORS' Duty to Put Client Interests Above Their Own
- What Veterans Need to Know About Buying a Home
- Negotiating Written Buyer Agreements
- Multiple Listing Services
- Fair Housing
- Listing Agreements
- 10 Questions to Ask A Buyer's Agent
- Buying Your First Home
- Mortgages and Financing
- Steps Between Signing & Closing On a Home
- Agency & Non-Agency Relationships
- Pre-Agency: WRA created Pre-Agency Showing Agreement (WRA-PASA) to use before touring a home if buyer has not agreed to Customer or Buyer Agency
- NAR Videos:
- NAR Written Buyer Agreements 101
- NAR Settlement Facts for Home Buyers: https://www.nar.realtor/the-facts/homebuyers-what-the-nar-settlement-means
- NAR Member Resource: DOs and DONTs When Working With Buyers
