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Since the National Association of Realtors (NAR) settled the commission lawsuits, I get the same question from buyers and sellers across San Jose and the Bay Area: did the rules make things better or worse? As a broker, my honest answer is that NAR and the MLS each bring real benefits and real trade-offs. Here is what changed and what it means for you.
What the NAR Settlement Changed
The settlement resolved class action claims from home sellers over broker commissions, including the Sitzer/Burnett case in Missouri. The federal court there granted final approval on November 26, 2024. NAR agreed to pay $418 million over about four years, and to adopt practice changes that took effect nationwide on August 17, 2024.
Two changes matter most to clients:
- No compensation offers on the MLS. A seller can still offer to pay a buyer’s agent, but that offer can no longer be posted on the MLS. If an offer is made, the seller must approve the amount in writing.
- Written buyer agreements. An agent working with a buyer must sign a written agreement with that buyer before touring a home, in person or live virtually. It must state the agent’s pay clearly, cannot be open-ended, and must say that commissions are not set by law and are fully negotiable.
Not sure how the new rules affect your purchase or sale? Reach out to Avil for more information. I am happy to walk you through your options. Call or text 408.807.5657, email home@avilsoleiman.com, or send me a message here.
NAR: Where It Helps and Where It Hurts
Helps: NAR sets the model rules most local MLSs follow and the Code of Ethics that Realtors agree to. After the settlement it published guides for agents, buyers and sellers, so the changes rolled out on one date with one playbook. NAR also kept its Clear Cooperation Policy in 2025, which requires a listing to go into the MLS within one business day of public marketing. That keeps listings from being shown only to a select few, which supports fair housing.
Hurts, or at least raises concerns: The lawsuits themselves show that many sellers felt the old system did not serve them. Some brokers also argue Clear Cooperation limits how sellers can market a home. In response, NAR added “Multiple Listing Options for Sellers” in 2025. A seller can now choose a delayed marketing listing, which is shared with MLS agents but held back from public websites for a period each MLS sets. Or they can choose an office exclusive that is not shared at all. Either way, the seller must sign a disclosure. More choice is good, but it also means more fine print to understand.
The MLS: Where It Helps and Where It Hurts
Helps: The MLS is still the most complete shared database of homes for sale. For sellers, it means wide exposure to every participating agent. For buyers, it means equal access to the same listing information, no matter which agent they work with.
Hurts, or at least adds friction: Because buyer-agent pay is no longer shown on the MLS, buyers and agents have to talk about it up front, and sellers have to decide whether to offer anything. That is more transparent, but it adds a step. And with delayed marketing now an option, some homes may reach agents before they reach public sites, so buyers who rely only on apps could see them later.
My Take for Bay Area Buyers and Sellers
I see the changes as a net step toward transparency, with some growing pains. In practice, here is how I approach it:
- Buyers: We sign a clear written agreement before touring, so you know exactly what I do and what it costs. We also talk about asking the seller to cover some or all of that cost in your offer.
- Sellers: We go over your marketing options, including full MLS exposure, delayed marketing or office exclusive, and whether offering buyer-agent pay could bring you more buyers. You decide, in writing.
- Everyone: Commissions are negotiable. Ask any agent what services you get for the fee.
This article is for general information and is not legal advice. Talk to a real estate attorney about your specific situation.
FAQ
Can a seller still pay the buyer’s agent after the NAR settlement?
Yes. A seller can still offer to pay the buyer’s agent, but the offer cannot be posted on the MLS, and the seller must approve the amount in writing.
Do I need to sign an agreement before touring a home?
Under the NAR practice changes, an agent working with a buyer must have a written agreement before an in-person or live virtual tour. It must state the agent’s pay and that commissions are negotiable.
Did NAR get rid of Clear Cooperation?
No. NAR kept Clear Cooperation in 2025 and added Multiple Listing Options for Sellers, which allows delayed marketing and office exclusive listings with the seller’s signed disclosure.
Are real estate commissions set by law?
No. Commissions are not set by law and are fully negotiable.
Reach Out to Avil for More Information
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Avil Soleiman Brokerage
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