After a $418 million settlement, the National Association of Realtors saw significant changes

Little Rock, Arkansas – A protracted legal dispute between the National Association of Realtors and 500,000 homeowners began in 2019 and was resolved in March for $418 million.

The NAR has consented to enact new regulations as part of the settlement to provide flexibility and transparency in the real estate commission structure.

Salesperson Ryan Stephens of Engel & Volkers stated, “Where things have been recommended practice and probably best practice in the past, it’s mandated now.”

One of the numerous modifications to the new regulations is the increased room for negotiating between brokers and their clients.

“It gives buyers the power to bargain with their buyer agent for a little bit more of those fees, and it gives them maybe a little more control over how their agent is paid,” stated Stephens.

Additionally, it requires that the buyer’s agent and the listing agent disclose to the consumer the percentage of the agent commission that each receives.

“It’s actually very helpful for consumers because it makes it clear how their agent will be compensated and it helps them understand the services that they will be receiving from that agent,” Stephens stated.

Another modification relates to the consent papers and documentation that either the buyer or the agent must sign before a house may be shown to a customer.

“Previously, you could make an appointment to view this house today or later this week by calling an agent or someone you know who works in real estate,” Stephens explained. “That’s no longer possible; they could show you that house without necessarily signing an agency agreement.”

In order to guarantee industry compliance, the settlement also mandates that the NAR inform its members of the modifications and offer training on the new regulations.

According to Stephans, the state-wide Arkansas Realtors Association met just last week to re-explain the new forms in advance of this Saturday, August 17, 2024, when they become necessary.

“We’re trying to figure it out and make it really the best for the consumer, but it’s something new,” Stephens remarked.