by Michele Williamson, Designated Broker & Partner What exactly is going on with the NAR lawsuit? To the public, it may seem like it's new news – we’re all seeing the headlines. But the reality is, for any REALTOR® out there, we have been keeping track of the lawsuit and how the settlement has been unfolding for the last 18 months. In the Spring of 2023, we knew there would be a trial in the Fall of 2023 for the Seitzer Burnett case in Missouri. We had our first class as a brokerage, here at North&Co., regarding the lawsuit on October 21, 2023 – which happened to be the same day that the jury awarded the plaintiffs almost $1.8 billion for damages in their settlement. Since then, there have also been other class-action lawsuits that have been delivered to different brokerages. What was the cause of the lawsuit, though? It all boils down to compensation. After the jury verdict in late October 2023, the National Association of REALTORS® (NAR) worked to move forward with settlement terms. The reason behind this was to protect the industry and the brokerages that were involved in the settlement. On March 15, 2024, we got the news that NAR delivered settlement terms to the plaintiff's attorneys – and come August 2024, we are enacting the changes within the terms of the settlement. What are the changes? As of this month, you will no longer see agent compensation advertised in any way, shape, or form on the Multiple Listing Service (MLS). Additionally, for any buyer to view a property – either it’s an in-person showing or a virtual showing – there must be an employment agreement in place between that buyer and an agent. These changes have been implemented nationwide. This does bring significant change to our process as agents, but overall, it greatly solidifies the relationship between agents and consumers. There is a whole new level of transparency out there, which helps elevate the relationship and the communication between agents and their clients. These last several months at North&Co., we have been laser-focused on the items within the settlement terms that we can control. We know that we will have more communication about what that compensation means in a transaction. And yes, there is a lot of paperwork that is now involved. Several different forms were introduced within the Arizona REALTORS® association, which means our agents have had weeks of training and education to understand these forms and when to use them. Now, more than ever, it’s critical that agents are informed and educated. As a brokerage, we have always aimed at being on the front lines of any changes in the industry. As a broker who's been in real estate for over 20 years, I've seen a lot of changes in market fluctuations. And with every single market change, agents have had to adjust and pivot in a way that makes it appear seamless to consumers. Behind the scenes is really where all of the work is, and educating yourself and being ahead of any changes. How will this settlement impact the real estate industry? When you’re working with a knowledgeable, educated agent, there are no changes – except that compensation can’t be advertised on the MLS, and buyers must sign an agreement before viewing properties. The recent NAR settlement is set to reshape the real estate industry by increasing transparency, greater consumer awareness, and a shift in how agents and brokers approach their services. Our ability to adapt and thrive in a shifting landscape will depend on our dedication to excellence, innovation, and ethical practices.