The National Association of Realtors® (NAR) has made a significant adjustment to its commission policy, known as the Participation Rule. This change now permits listing brokers to offer buyer brokers a compensation of $0 when listing a home in any of the 500 Realtor-affiliated MLSs across the U.S.

 

Previously, NAR's Participation Rule mandated listing brokers to provide buyer brokers with some form of commission, even if as minimal as one penny. With two class action lawsuits on the horizon, NAR has modified the rule's specifics.

 

According to NAR spokesperson Mantill Williams, "NAR’s MLS policy requires participants to communicate an offer of compensation to other MLS participants, and that offer can be any amount, including $0."

 

NAR insists that this alteration emphasizes transparency in commission dealings between brokers and clarifies that it doesn't mandate MLSs to change their data fields for $0 compensation.

 

**Ensuring Efficiency Amidst Change**

 

NAR asserts that its policies aim to efficiently distribute information for real estate transactions' benefit to both buyers and sellers. According to Mantill Williams, NAR spokesperson, these policies prevent brokerages from relying on inefficient, piecemeal information that could negatively impact their ability to serve clients and the U.S. economy.

 

Despite criticism, NAR maintains confidence that the upcoming trials will not sway the jury with any confusion. The association downplays the about-face, arguing that there's no evidence of the alleged price-fixing.

 

**NAR's Shifting Stance: From "Not Zero" to "Any Amount, Including $0"**

 

Historically, NAR asserted that listing brokers could offer buyer agents "as little as" one penny or one dollar for commission. Now, just before trial, they allow $0, prompting speculation about potential confusion in NAR's strategy.

 

This change has led some, like Redfin, to question NAR's interpretation, stating, "That is not our understanding of how NAR has interpreted their policy in the past and appears inconsistent with prior reporting."

 

As the real estate landscape undergoes these shifts, we'll continue to provide updates. Stay tuned for more developments.