Public statements from major real estate agencies

NAR Settles Lawsuit, Changes to Real Estate Commissions to Begin in August

May 3, 2024, 07:00 PM

A class action lawsuit led by plaintiff James Lutz against HomeServices and other members of the National Association of Realtors (NAR) alleges that they fixed commissions, misleading buyers and causing them to pay inflated home prices. Following the lawsuit, NAR has agreed to a settlement that will introduce significant changes to real estate broker compensation policies. These changes, detailed by NAR's chief legal officer Katie Johnson in a recent letter, are set to take effect in mid-August. The settlement will also allow seller's agents the option not to offer commissions to buyers' agents, a shift that could impact both buyers and sellers.