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NAR Settlement:
What Agents Need to Know

The rules changed. Buyer agent compensation is no longer offered through the MLS. Here's what it means for your business and how CloseDaily helps you adapt.

How We Got Here

2019 — Lawsuits Filed

Sitzer/Burnett and other class-action lawsuits alleged that NAR rules requiring listing agents to offer buyer agent compensation inflated commissions and harmed consumers.

October 2023 — Verdict

A jury found NAR and major brokerages liable, awarding $1.78 billion in damages (later reduced). The verdict sent shockwaves through the industry.

March 2024 — NAR Settles

NAR agreed to a $418 million settlement and committed to sweeping rule changes affecting how buyer agent compensation is handled nationwide.

August 2024 — Rules Take Effect

New MLS rules go live: offers of buyer agent compensation removed from MLS listings. Written buyer agreements required before showing homes. The industry enters a new era.

What Actually Changed

MLS Compensation Offers

Buyer agent compensation can no longer be advertised or offered through the MLS.

BeforeListing agent offers 2.5-3% buyer agent commission in the MLS.
NowCompensation is negotiated directly between buyer and agent, or between agents off-MLS.

Written Buyer Agreements

Buyer agents must have a signed agreement before touring homes with a client.

BeforeBuyer agents could show homes without a formal agreement. Compensation was assumed.
NowWritten agreement required, specifying compensation amount and terms before any showings.

Commission Negotiation

Agent commissions are now openly negotiated between all parties.

BeforeStandard 5-6% total commission split between listing and buyer agent. Rarely questioned.
NowEvery commission is negotiable. Buyers may pay their agent directly. Sellers may still offer concessions.

Agent Value Proposition

Agents must now clearly articulate and demonstrate their value to earn compensation.

BeforeCompensation was baked into the system. Less pressure to justify fees.
NowAgents who can demonstrate value, expertise, and results will win. The rest will struggle.

How CloseDaily Helps You Adapt

The agents who thrive in this new landscape will be the ones with the best tools, the best systems, and the best follow-up.

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Buyer Agreement Templates

Pre-built buyer representation agreement templates in your transaction manager. Customize, send for e-signature, and store — all inside CloseDaily.

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Commission Tracking

Track negotiated commissions per transaction. See your expected income, actual payments, and commission breakdowns at a glance in your pipeline.

Compliance Checklists

Built-in checklists ensure you have a signed buyer agreement before showings, proper disclosures, and documentation at every stage.

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AI Value Articulation

Cleo AI helps you craft compelling value propositions, buyer consultation scripts, and objection handlers for the "why should I pay you?" conversation.

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Your IDX Website

Your CloseDaily website showcases your expertise with market data, neighborhood guides, and property search — proving your value before the first meeting.

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Transaction Management

Track every detail of the buyer-side transaction: agreement status, commission terms, closing timeline, and compliance documentation in one place.

Settlement Questions

The NAR settlement eliminated mandatory offers of buyer agent compensation through the MLS. Buyer agents must now use written buyer agreements before showing homes, and compensation must be negotiated directly between buyers and agents.

Yes. As of August 2024, buyer agents must have a written buyer representation agreement in place before touring homes with a client. The agreement must clearly state how and how much the buyer agent will be compensated.

CloseDaily provides buyer agreement templates, commission tracking per transaction, compliance checklists, and CRM tools to document every step of the buyer relationship — keeping you organized and compliant in the post-settlement landscape.

Navigate the New Normal

Buyer agreements, commission tracking, compliance checklists — built into your CRM.

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