Kansas City Regional Association of REALTORS® Provides Clarification of NAR Settlement Facts

KANSAS CITY, Kan., April 2, 2024 /PRNewswire/ -- The Kansas City Regional Association of REALTORS® (KCRAR), in an effort to dispel misinformation, is providing clarification of the facts about the pending National Association of REALTORS® (NAR) settlement agreement.

After a settlement agreement was announced earlier this month for the class action Sitzer-Burnett case against NAR and others, outside sources have been relaying information of varying degrees of accuracy. One thing this settlement, which is pending court approval, would not change is the fact that commissions for agents representing home buyers will remain negotiable. Commissions have always been negotiable and were never set by NAR.

The proposed settlement would change, however, the way compensation for buyer broker services is communicated. Rates would no longer be available via the Multiple Listing Service (MLS), a change which Heartland MLS (owned by KCRAR) will be making in the coming months. However, listing brokers and sellers may continue to offer compensation for buyer broker services off the MLS.

Additionally, if the proposed settlement is approved, agents representing buyers would be required to enter into written agreements with their buyers before touring a home. A majority of agents have already been utilizing buyer representation agreements as a business practice; this change would simply mandate that all agents would be required to do so. These agreements can help consumers understand exactly what services and value will be provided, and for how much.

"While I do still disagree with the jury's findings, I do see the settlement as a positive way forward for greater transparency for consumers and puts an end to years of needless litigation," said Kipp Cooper, CEO of KCRAR and Heartland MLS.

The full NAR Fact sheet can be found here.

About KCRAR
The Kansas City Regional Association of REALTORS®, "The Voice for Real Estate in the Kansas City Region," is the largest professional business association in the greater Kansas City area. KCRAR serves more than 13,000 REALTOR® members in Kansas and Missouri.

The Kansas City Regional Association of REALTORS® (KCRAR) exists to protect the rights and privileges of home ownership, to maintain continuing avenues of education and to improve the standards of the real estate profession and to serve our members and the real estate community.

KCRAR is affiliated with the National Association of REALTORS®, the Kansas Association of REALTORS® and Missouri REALTORS®.

SOURCE KCRAR

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