NAR Says New MLS Rules Go Into Effect In August

The timeline for the National Association of Realtors’ new policies is taking shape.

The rule changes proposed in the 1.4 million-member trade group’s landmark antitrust settlement will take effect on Aug. 17, chief legal officer Katie Johnson announced on Friday.

The news comes a week after a federal judge preliminarily approved NAR’s $418 million settlement. The organization struck a deal with the homeseller plaintiffs to resolve nationwide claims accusing the group of conspiring with the nation’s largest brokerages to hike agents’ pay.

Under the terms, NAR agreed to prohibit listing brokers from offering commissions to buyer’s agents on multiple listing services and to require agents working with buyers to obtain written agreements before taking them on home tours.

The agreement requires NAR-controlled MLSs to implement the rule changes no later than the date the plaintiffs begin notifying the class. During the preliminary approval process, the plaintiffs set Aug. 17 as the earliest notification date.

The deal also included a provision allowing independent or partially-independent MLSs to pay to opt-into the terms of the settlement. Those MLSs have until Sept. 16 to implement the policies to qualify for the coverage.

The organization on Friday added the timeline updates to the FAQ page on its website. The settlement is still waiting for the judge’s final approval, the hearing for which is scheduled on Nov. 26.

Johnson earlier this week clarified some of the upcoming rule changes, specifically the policy pertaining to buyer’s agent agreements, Inman reported on Monday. These clarifications are now reflected on the group’s website.

The agreement specifically requires agents “working with buyers” to secure a signed agreement before “touring a home.” These agreements must specify the broker’s provided services and their compensation expectations.

Under the group’s definition, agents are only considered to be working with a buyer if they’re providing individualized services such as identifying potential homes, scheduling showings and negotiating on their behalf. This doesn’t include agents who are just talking to buyers at an open house or showing an unrepresented buyer around one of their listings.

Existing buyer’s agreements must be updated to comply with the organization’s new rules.