The National Association of Realtors (NAR) will get rid of its usual 5 to 6 percent sales commission as part of a $418 million agreement with home sellers.
The influential realtors organization has decided to pay $418 million in compensation to settle various lawsuits from home sellers, as stated in a press release. The lawsuits claimed that NAR’s commission rules compelled home sellers to pay excessive fees, according to The New York Times.
“NAR has made significant efforts for years to resolve this legal action in a way that benefits our members and American consumers,” Nykia Wright, the interim CEO of NAR, said in a statement. “It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals.”
The agreement will likely result in a notable decrease in commissions for home sales, with the association agreeing to eliminate a compensation-sharing system at the heart of the lawsuit.
NAR stated that it “continues to deny any wrongdoing” in relation to the compensation-sharing system. It also mentioned that offers of broker compensation “continue to be an option consumers can pursue” outside the system.
“Offers of compensation help make professional representation more accessible, decrease costs for home buyers to secure these services, increase fair housing opportunities, and increase the potential buyer pool for sellers,” NAR argued.
Updated at 10:54 a.m.
