In 2024 the National Association of REALTORS agreed to settle a wave of antitrust lawsuits over how real estate commissions were set and shared. The settlement led to practice changes that took effect nationwide on August 17, 2024. Two of them changed the everyday experience of buying a home: buyers working with an agent who participates in a multiple listing service now generally sign a written agreement before touring homes, and the MLS no longer displays offers of compensation to buyer agents.
More than two years later, these rules are simply how the market works. Yet many buyers and sellers still meet them for the first time when an agent hands over a contract. This guide explains what changed, what did not, and how to handle it well.
Background in brief
For decades, the typical arrangement was that a seller agreed to a total commission in the listing agreement, and the listing brokerage advertised on the MLS how much of it would be paid to whichever brokerage brought the buyer. Lawsuits brought on behalf of home sellers argued that this system kept commissions high and limited competition. After a federal jury in Missouri found against NAR and several large brokerages in late 2023, NAR announced a settlement in March 2024. The settlement included a payment to resolve claims and a set of practice changes. A federal court granted final approval in late 2024.
The settlement did not set commission rates, cap them, or ban sellers from paying buyer agents. It changed how compensation is communicated and how buyers agree to pay for representation.
What changed and what stayed the same
| Topic | Before August 17, 2024 | Since August 17, 2024 |
|---|---|---|
| Buyer agent pay on the MLS | Listings commonly showed an offer of compensation to buyer brokers | Offers of compensation cannot be shown on the MLS |
| Buyer agreements | Required in some states and by some brokerages, but not universal | MLS participants working with a buyer must have a written agreement before touring a home |
| Buyer agent fee | Often set indirectly by the listing side's offer | Stated in the buyer agreement as a specific amount or rate negotiated with the buyer |
| Seller paying the buyer agent | Common, through the MLS offer | Still allowed, negotiated off the MLS or through the purchase offer |
| Commission rates | Negotiable, not set by law | Still negotiable and not set by law, which agreements must now state plainly |
The written buyer agreement
The rule most people notice is the requirement for a written agreement before touring. If you want an MLS-participant agent to show you a home, in person or through a live virtual tour, expect to sign one first. Under the practice changes, the agreement must:
- State the amount or rate of compensation the agent will receive, or how it will be calculated, in a way that is objectively ascertainable and not open-ended. "Whatever the seller offers" does not qualify.
- Say the agent may not receive compensation from any source that exceeds the amount or rate agreed in the contract.
- Include a conspicuous statement that broker fees and commissions are not set by law and are fully negotiable.
Beyond those minimums, the details are negotiable and vary by brokerage and by state form. Some agreements are exclusive and last for months. Others are non-exclusive or cover only a single property or a short period. You do not need to sign an agreement simply to talk with an agent, ask questions, or walk into a public open house on your own.
Checklist before signing a buyer agreement
- Compensation. Is the fee a clear percentage or flat amount? Is it the total you would owe if the seller pays nothing?
- Who pays. Does the agreement say how seller-paid compensation or concessions will be credited against what you owe?
- Length. How many days or months does it run? Can you shorten it?
- Scope. Does it cover one property, a neighborhood, or any home you buy anywhere?
- Exclusivity. Can you work with other agents at the same time?
- Termination. How can you end it, and is any fee owed if you do?
- Protection period. If you buy a home the agent showed you after the agreement ends, do you still owe a fee, and for how long?
- Services. What will the agent actually do for you, from showings to negotiation to closing?
What the settlement means for buyers
The biggest change for buyers is clarity, along with responsibility. You now agree upfront on what your agent will earn, which means you also need to plan for the possibility that a seller will not cover all of it.
- Interview agents before you tour. Because a signed agreement comes before the first showing, choose your agent with care, and compare fees and terms.
- Talk to your lender early. Ask whether your loan program allows seller concessions to be applied to your agent's fee and whether any buyer-paid fee can be financed. Rules differ by loan type and lender. The Department of Veterans Affairs, for example, updated its guidance in 2024 to allow veterans to pay buyer broker fees in certain circumstances.
- Use your offer. You can ask the seller to pay some or all of your agent's fee, or to provide a concession, as part of the purchase offer. Sellers can say yes, no or counter.
- Budget for the gap. If the seller pays less than your agreement specifies, you may owe the difference at closing, depending on your agreement's terms.
- Consider short agreements at first. A single-property or short-term agreement lets you test the relationship before committing.
What the settlement means for sellers
Sellers still decide whether to offer anything toward a buyer's agent. The difference is that the offer is no longer advertised on the MLS, and listing brokers must disclose any proposed payment to a buyer's broker and get the seller's approval.
- Negotiate the listing fee separately. Your listing agreement should state what your own brokerage will earn. Any amount for a buyer's agent is a separate decision.
- Decide on a strategy. Some sellers offer buyer agent compensation to widen the pool of buyers. Others prefer to consider requests offer by offer. Your agent can explain what local buyers are typically asking for, but there is no required amount.
- Compare net proceeds, not headline prices. An offer with a higher price that asks you to pay the buyer's agent may net you more or less than a lower offer without that request. Ask your agent to calculate the net on each.
- Watch how compensation is communicated. It may be shared off the MLS, for example by a direct conversation between agents or on a brokerage website, depending on local rules.
Common myths about the realtors settlement
Myth: commissions were cut to a fixed percentage. The settlement did not set any rate. Fees remain negotiable.
Myth: sellers can no longer pay buyer agents. They can. They just cannot advertise that offer on the MLS.
Myth: buyers must now pay their agent out of pocket. Buyers agree to a fee in writing, but who actually pays it at closing is negotiated, and the seller may still cover part or all of it.
Myth: you need an agreement to visit an open house. Walking into a public open house on your own does not require a buyer agreement with anyone.
Myth: every agreement locks you in for months. Terms are negotiable, and short or single-property agreements are used in many markets.
It is also worth being cautious about claims of how much the settlement has lowered commissions overall. Reports from different data sources have not been consistent, and fees continue to vary widely by market.
How state rules fit in
The settlement changed NAR rules and the policies of MLSs that follow them, but state law still governs agency relationships, required disclosures and contract forms. Some states already required written buyer representation agreements before the settlement, and several have updated their forms or laws since. Your state real estate commission is the best source for local requirements, and a real estate attorney can review an agreement if you have concerns.
A practical game plan
If you are buying in the coming months, start by speaking with a lender and getting a sense of your budget, then interview two or three agents and ask each one to walk you through their buyer agreement line by line. Negotiate the fee, the term and the scope before you tour anything. When you make an offer, decide with your agent whether to request seller-paid compensation or a concession, and confirm with your lender that the structure works for your loan.
If you are selling, negotiate your listing fee on its own merits, then decide with your agent how you will respond to buyer requests for compensation. Evaluate each offer by its net to you, its financing strength and its contingencies, not only by the price at the top of the page.
Since August 2024, the question is no longer "what does the MLS say the buyer agent gets?" It is "what did each party agree to in writing?"
Quick answers
When did the NAR settlement rules take effect?
The practice changes from the National Association of REALTORS settlement took effect on August 17, 2024. From that date, offers of compensation to buyer brokers could no longer be displayed on the MLS, and MLS-participant agents working with buyers had to have a written agreement before touring a home. A federal court granted final approval of the settlement later in 2024.
Do I have to sign a buyer agreement to see a house?
If you want an agent who participates in an MLS to tour a home with you, in person or by live virtual tour, you will generally need to sign a written agreement first. You do not need one to talk with an agent, ask questions, or visit a public open house on your own. Agreements can be short-term, non-exclusive or limited to a single property.
Can a seller still pay the buyer's agent?
Yes. The settlement did not ban seller-paid buyer agent compensation. It only stopped offers of compensation from being published on the MLS. Sellers can agree to pay a buyer's agent through direct negotiation, as part of the listing terms communicated off the MLS, or in response to a buyer's purchase offer, including through a seller concession if the buyer's loan allows it.
What must a written buyer agreement include?
Under the practice changes, it must state the agent's compensation as a specific amount or rate, or an objectively ascertainable method, and not an open-ended one. It must say the agent cannot receive more than that from any source, and it must state clearly that commissions are not set by law and are fully negotiable. Term, exclusivity and cancellation are negotiated between you and the brokerage.
This guide is general information, not legal, tax or financial advice. Rules differ by state; confirm details with a licensed professional or your state real estate commission.