It’s time for brokerages, MLSs to settle — or face liability
June 18 is the deadline for those not covered by the NAR settlement to opt in and pay damages, or risk further litigation in the commissions cases.
Decision time has arrived for the larger brokerages and multiple listing services not covered by the $418 million NAR settlement.
In a message posted today on the National Association of Realtors website, the organization shared a reminder for brokerages with more than $2 billion in transaction volume and non-Realtor MLSs: June 18 is the deadline to resolve claims brought by home sellers over agent commissions using the settlement pathway outlined in the NAR deal.
For brokerages, that would mean agreeing to change their commissions practices in accordance with the NAR settlement terms, and pay an amount into the settlement fund equal to .0025 multiplied by their average annual transaction volume over the last four calendar years. A brokerage that averaged $2 billion, for example, would have to pay $5 million.
MLSs who opt in would pay damages equal to 100 multiplied by their number of subscribers in 2023.
The association also noted that all MLSs must opt in "to obtain a release of liability," even if they are wholly owned by Realtor associations. Most MLSs fall into that category, and while they wouldn't have to pay into the settlement fund, they must complete required paperwork to be covered.
Detailed instructions on how to opt in are included in the NAR posting.
Who is affected by the deadline
More than 90 brokerages had transactions of more than $2 billion in 2022, and around 30 non-Realtor MLSs are not covered by the NAR settlement. Two of the largest brokerages that have yet to settle are eXp and Howard Hanna.
These are the settlements or decisions that have been announced so far:
Finalized, but under appeal:
Anywhere Real Estate: $83.5 million
Keller Williams: $70 million
RE/MAX: $55 million
Recently announced or preliminarily approved:
National Association of Realtors: $418 million
HomeServices of America: $250 million
Compass: $57.5 million
Real Brokerage: $9.25 million
Realty ONE: Damage total not announced yet
@properties: Damage total not announced yet
Douglas Elliman: Up to $17.75 million
Redfin: $9.25 million
Not planning to opt in: