On March 15, 2024, the National Association of Realtors agreed to a $418 million settlement. It was the biggest change to real estate commissions in decades. The new rules took effect on August 17, 2024.
Now it is 2026. The dust has settled, but the confusion has not. Many agents still do not fully understand what changed, what is required, and how to adapt. This guide breaks it all down in plain English.
What was the lawsuit about?
A group of home sellers in Missouri sued NAR and several large brokerages. Their claim: the traditional commission structure forced sellers to pay inflated fees to buyer's agents. The case was called Sitzer/Burnett v. NAR. A jury found NAR liable in October 2023 and awarded $1.78 billion in damages.
Rather than fight appeals for years, NAR settled in March 2024 for $418 million. As part of the deal, NAR agreed to change its rules about how commissions work on the MLS.
The 3 big rule changes
The settlement created three major shifts in how real estate works:
1. No more commission offers on the MLS
Before August 2024, listing agents put the buyer's agent commission directly on the MLS. A listing might say “2.5% to buyer's agent.” That is gone. MLS listings can no longer include offers of compensation to buyer's agents.
Sellers can still offer to pay a buyer's agent. But they cannot do it through the MLS. Instead, they can advertise it on their brokerage website, through their listing agent, or through direct negotiation.
2. Buyers must sign a written agreement before touring homes
This is the change that hit agents hardest. Before a buyer's agent can show a single property, the buyer must sign a written representation agreement. This agreement must spell out:
- •How much the buyer will pay their agent (a specific dollar amount or percentage)
- •That the agent cannot receive more compensation than what the agreement states
- •That the compensation is negotiable and not set by law
- •The services the agent will provide
In practice, this means every buyer agent now has the “commission talk” upfront. No more casual home tours without paperwork.
3. Commission is fully negotiable
Commissions were always technically negotiable. But the old system made 5-6% feel like a standard. The settlement makes it clear: there is no standard rate. Every deal is separate. Buyers, sellers, and agents decide compensation on a case-by-case basis.
What this means for buyer's agents
Buyer's agents felt the biggest impact. Here is what changed in their daily work:
- •You must have a signed buyer agreement before showing any home. No exceptions.
- •Your compensation comes from the buyer, unless the seller agrees to cover it.
- •You need to explain your value upfront. Buyers now ask "Why should I pay you?"
- •Open houses changed. Agents cannot represent a buyer at an open house without a signed agreement.
- •Some buyers are shopping without agents to avoid paying a commission. This is legal.
What this means for listing agents
Listing agents still work with sellers to set the list price and market the property. But the commission conversation changed:
- •You cannot put buyer agent compensation on the MLS anymore.
- •Sellers can still offer to pay the buyer agent, but it happens off-MLS.
- •Some sellers now refuse to offer buyer agent compensation. This can reduce the buyer pool.
- •You may need to explain to sellers why offering buyer agent compensation can still help sell the home faster.
- •Listing agreements should be updated to reflect the new rules.
How commissions actually work now
In 2026, here is how a typical transaction looks:
Buyer signs representation agreement
Before touring any home, the buyer and their agent agree on compensation. Example: 2.5% of the purchase price, or a flat $8,000 fee.
Listing goes on MLS without buyer agent commission
The seller lists the home. The MLS shows price, photos, and details. No mention of buyer agent pay.
Buyer finds a home and makes an offer
The buyer and their agent negotiate the purchase. The buyer can ask the seller to cover the agent fee as part of the deal.
Commission is handled at closing
If the seller agrees to pay, it comes out of the sale proceeds. If not, the buyer pays their agent directly.
New CE requirements tied to the settlement
Several states now require agents to complete CE courses on the NAR settlement changes. As of early 2026:
- •Texas added a mandatory Legal Update course covering the new rules
- •California requires ethics CE that includes buyer representation agreements
- •New York updated its fair housing CE to address the settlement impacts
- •Colorado, Florida, and Georgia have issued guidance on settlement-related CE
- •NAR itself offers a free 2-hour course on the practice changes
Check your state requirements on our state page to see if settlement-related CE is mandatory where you are licensed. Use AgentCE to track which courses you have completed and which ones are still needed.
How agents are adapting
The agents who are winning in the post-settlement world are doing a few things differently:
Leading with value
They explain what they do before talking about money. Market analysis, negotiation, inspection coordination, contract review. The agents who can show their value get the buyer agreements signed.
Having the money talk early
No more waiting until closing to discuss commission. Top agents bring it up in the first meeting. They make it feel normal, not awkward.
Offering flexible fee structures
Some agents now offer tiered services: full service at 2.5%, limited service at 1.5%, or flat-fee options. Flexibility wins clients.
Staying educated
The rules are still evolving. State commissions are issuing new guidance regularly. Agents who stay current through CE courses and industry updates are the ones who keep their clients confident.
What to watch in 2026 and beyond
The settlement is not the end. Several things are still in play:
- •DOJ involvement: The Department of Justice is watching how the industry implements the changes. More lawsuits are possible if the DOJ sees anti-competitive behavior.
- •State-level lawsuits: Copycat suits have been filed in multiple states. Some are still working through the courts.
- •MLS rule updates: Individual MLSs are still tweaking their rules. What your MLS allows today may change tomorrow.
- •Consumer behavior: Buyers are more aware of agent fees than ever. Some are negotiating lower rates. Some are going without agents entirely.
- •New business models: Flat-fee brokerages, hourly-rate agents, and tech platforms are gaining ground. The traditional model is not dead, but it is no longer the only option.
Stay compliant and stay ready
The NAR settlement changed how agents get paid, how buyers commit, and how listings show up on the MLS. If you have not updated your buyer agreements, taken settlement-related CE, or adjusted your commission conversations, now is the time.
Track your CE progress with AgentCE. It loads your state requirements, tracks your hours by category, and sends reminders before your renewal date. Free for one license.
For the full breakdown of CE hours by state, read our state-by-state CE guide. For help with your next renewal, check the license renewal walkthrough.