Appeals Court Upholds NAR Settlement
The National Association of REALTORS®’ settlement in the Sitzer-Burnett case remains intact following a federal appeals court ruling.
A three-judge panel of the Eighth Circuit Court of Appeals upheld the settlement, rejecting several challenges to its final approval.
For REALTORS®, the biggest takeaway is simple: the settlement remains in effect, along with the practice changes that came with it.
What the Court Decided
The settlement received final court approval in November 2024, but several objectors appealed the decision.
Among their arguments, the objectors challenged whether the plaintiffs had legal standing, whether the settlement payout and distribution were adequate, and whether home buyers should have been included in the settlement.
The appeals court rejected those challenges and affirmed the district court’s approval of the settlement.
NAR welcomed the decision, saying it will continue working to support fair, transparent and pro-consumer real estate markets while providing resources and value to REALTORS® nationwide.
What This Means for REALTORS®
The ruling does not introduce a new set of practice changes. Instead, it leaves the existing settlement and its requirements in place.
Those changes include:
- Written buyer agreements: MLS participants working with buyers must enter into a written agreement before touring a home.
- Compensation offers stay off the MLS: Offers of compensation cannot be communicated through REALTOR® multiple listing services.
- Compensation remains negotiable: Broker compensation continues to be fully negotiable between real estate professionals and their clients.
These requirements have been in effect since August 2024 and remain part of the way REALTORS® conduct business today.
The Settlement Remains in Place
Under the settlement, NAR agreed to pay $418 million over four years and secured releases of liability for more than 1 million NAR members, REALTOR® associations, association-owned MLSs and other qualifying organizations and brokerages.
With the appeals court affirming final approval, the settlement remains intact.
For MetroTex members, there is no new practice change resulting from this ruling. Continue following the settlement requirements already in place, including using written buyer agreements and keeping offers of compensation off the MLS.