What happened
The National Association of Realtors settled nationwide commission lawsuits for $418 million, agreeing to practice changes that took effect August 17, 2024. The core finding: automatic, seller-funded, percentage-based buyer compensation — advertised right on the MLS — suppressed price competition for representation.
The three rule changes that matter
- MLS compensation offers banned. Listing brokers can no longer advertise buyer-agent pay on the MLS. Compensation must be negotiated off-MLS, deal by deal.
- Written buyer agreements required before touring. No more handshake tours. The agreement must state exact compensation — a flat fee, a percentage, or an hourly rate.
- Vague terms prohibited. "Whatever the seller offers" and similar open-ended language is banned. The number must be objective and knowable in advance.
Who pays the buyer's agent now?
Increasingly, the buyer does — directly. In practice this surfaces as a new closing cost (often ~2.3–2.5% where percentages persist), a seller concession negotiated into the offer, or a flat fee agreed up front. Every transaction now carries a compensation negotiation that used to be invisible.
Why pre-agreed flat fees fit
A flat dollar figure is the simplest possible compliance with the "exact compensation in writing" rule. It removes the per-offer commission negotiation, keeps the purchase contract clean, and converts an unpredictable percentage into a fixed, budgetable line item. How flat-rate selling works →
Practical checklist
- Buyers: sign the broker agreement only after the compensation line is a number you accept — before the first tour.
- Sellers: decide in advance how (and whether) you will entertain buyer-agent compensation requests in offers.
- Everyone: get every fee in a fixed dollar amount, in writing, before work begins.
Transact under the new rules — confidently
Pre-agreed flat fees, NAR-compliant paperwork, full service included.
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Informational summary based on publicly reported settlement terms; not legal advice. Rules continue to evolve by state and MLS.