CBA Legal Bulletin: Clarifications to NAR's Proposed Settlement and Policy Changes

We have received numerous inquiries regarding the National Association of REALTORS® (“NAR”) recently proposed settlement and its impact on the publication of broker compensation in residential real estate transactions. In consultation with CBA's legal counsel, this bulletin aims to clarify the impact of NAR's policy changes and allay any concerns about CBA’s continued practice of allowing sellers to offer compensation to buyer brokers.

In March of 2024, the National Association of REALTORS® (“NAR”) announced a proposed settlement of national class action litigation involving broker compensation in residential real estate transactions. On August 17, 2024, NAR implemented several policy changes in connection with the proposed settlement.

Multiple Listing Services (MLS) included in the settlement are prohibited from publishing compensation offers. CBA brokers who publish a seller’s or landlord’s offer compensation to a buyer’s or tenant’s broker through CBA, however, DO NOT violate the terms of NAR’s proposed settlement. This is because nothing in the proposed settlement agreement requires brokers covered by the settlement, or their sellers/landlords, to refrain from offering compensation to buyers’ or tenants’ brokers through the MLS or otherwise.

The prohibition on offering compensation in the MLS is a condition of MLSs opting into the settlement, not their brokers. As a commercial MLS unaffiliated with NAR, CBA DID NOT opt into the settlement and thus has no such obligation, nor do CBA’s brokers. All CBA brokers may continue to include a seller’s or landlord’s offer of compensation in the listing data submitted to CBA.

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