(The Hill) — The National Association of Realtors (NAR) will eliminate its standard 5- to 6-percent sales commission as part of a $418 million settlement with home sellers.
The powerful realtors organization agreed to pay $418 million in damages to settle several lawsuits from home sellers, it announced in a press release. The lawsuit alleged that the NAR’s commission rules forced home sellers to pay excessive fees, according to The New York Times.
“NAR has worked hard for years to resolve this litigation in a manner 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 settlement will likely lead to a significant drop in commissions for home sales, with the NAR agreeing to drop a compensation-sharing system at the core of the lawsuit. If
NAR said it “continues to deny any wrongdoing” in connection with the compensation-sharing system. It also said 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.
