The NAR Lawsuit Settlement’s Effects on Buyers and Sellers

This settlement results in greater transparency for buyers and sellers. Recently, there has been significant coverage of a lawsuit settlement involving the National Association of Realtors (NAR). But what does this settlement mean for buyers and sellers, and how might it impact you?

Essentially, the settlement revolves around the transparency of representation of sellers and buyers in real estate transactions. A listing agent has ALWAYS and continues to represent the seller, while a buyer’s agent has ALWAYS and continues to represent the buyer.

The significant change brought about by the settlement is the decoupling of payment between listing agents and buyer’s agents. In the past, buyer’s agents were often compensated by the listing agent. Now, the settlement mandates a clearer separation, emphasizing their disapproval of the seller paying the listing agent and the listing agent then paying the buyer’s agent.

“The key takeaway from this settlement is clarity.”Overall, the key takeaway from this settlement is clarity of compensation. By decoupling the compensation structure and making representation roles more transparent. Instead of funds flowing directly from the seller’s agent to the buyer’s agent, the settlement strives for a clearer delineation.

How does this affect buyers? How does this affect sellers? We will share more about that in the next two videos. If you have any questions about the settlement, don’t hesitate to call me or send me an email.