NAR Settlement and California's Buyer Agreement (BRBC)

Since August 17, 2024, a buyer working with an agent who uses an MLS signs a written agreement before touring homes, and offers to pay buyer agents no longer appear on the MLS. In California, a state law in effect since January 1, 2025 (AB 2992) adds its own rules: the agreement must be signed no later than your offer, state the agent's pay and services, and last no more than three months. Commissions remain fully negotiable and are not set by law.

This guide explains where those rules came from and what they mean for you today. It is general information, not legal advice. For legal questions about a contract, talk with a California real estate attorney.

What were the NAR commission lawsuits about?

The best-known case is Burnett v. National Association of Realtors, often called Sitzer/Burnett. It was heard in federal court in Kansas City, Missouri. Home sellers there alleged an antitrust conspiracy by NAR and several large brokerages that pushed up what sellers paid buyers' agents, according to the ABA Journal.

The sellers pointed to an NAR rule that required listing brokers to offer pay to buyer brokers before a home could go on the MLS. They argued this kept buyer-side pay high and limited competition.

On October 31, 2023, the jury sided with the sellers and awarded about $1.78 billion, as NBC News reported. Antitrust law allows damages to be tripled, which put the possible total above $5.3 billion. The jury found NAR, HomeServices of America and Keller Williams liable, per the ABA Journal.

NAR disputed the claims. It said there was no evidence that agents had been required to make offers of compensation, and it planned to appeal, per the same report and Real Estate News. Years earlier, NAR had argued in its own commentary that commissions could be negotiated at any point in a deal.

A similar case, Moehrl v. NAR, was filed on March 6, 2019, in federal court in Illinois. It made comparable antitrust claims about the buyer-broker pay rule, according to a RE/MAX filing with the SEC. More copycat suits followed, which NAR's settlement also addressed.

What did the NAR settlement change?

NAR's settlement became public on March 15, 2024, HousingWire reported. NAR agreed to pay $418 million over about four years and to change practice rules. NAR's settlement FAQ says it continues to deny wrongdoing.

The court granted preliminary approval in April 2024. Two practice changes took effect August 17, 2024:

1. No pay offers on the MLS. MLS listings can no longer show offers of compensation to buyer brokers.
2. Written agreement before touring. An agent working with a buyer must have a signed written agreement before the buyer tours a home, in person or by live virtual tour.

NAR's buyer and seller guide explains what goes in the agreement. Your agent's pay has to be spelled out in a way anyone can calculate, such as a flat fee or a percentage, rather than left open. Whatever you agree to is the most the agent may receive, no matter who pays. The agreement also has to tell you, in plain view, that fees are negotiable and not set by law.

Chatting with an agent at an open house, or asking what services they offer, does not trigger the agreement rule, the same guide says.

Was the settlement approved and appealed?

Judge Stephen Bough granted final approval on November 26, 2024, according to NAR and HousingWire. The court entered final judgment on January 15, 2025. It also directed that related cases against NAR be dismissed once the settlement takes effect.

Several brokerage defendants reached their own settlements. NBC News reported $83.5 million for Anywhere and $55 million for RE/MAX, and HousingWire reported $250 million for HomeServices. Keller Williams also settled, as did other firms named in related cases, per HousingWire.

The U.S. Department of Justice took no position on approval. In a November 24, 2024 statement of interest, it raised concerns that the before-touring rule could limit how brokers compete, Real Estate News reported. In September 2023, the DOJ had also filed a statement questioning proposed rule changes in a separate Massachusetts MLS settlement.

Objectors appealed. On August 19, 2026, the Eighth Circuit upheld the settlements, rejecting seven challenges, per Real Estate News. The court issued its mandate on October 2, 2026, closing appeals in that circuit, Inman reported. Inman noted that objectors could still ask the U.S. Supreme Court for review, so check for later developments.

Has NAR changed MLS rules since 2024?

Yes, in two dated steps:

• March 25, 2025: NAR kept its Clear Cooperation Policy and added Multiple Listing Options for Sellers. A seller can choose a "delayed marketing" listing that other MLS members see before it goes to public websites. The seller must sign a disclosure. MLSs had until September 30, 2025, to put it in place.
• November 17, 2025: NAR approved 18 updates to its MLS Handbook, to appear in the 2026 edition. NAR says they give local MLSs more discretion and update enforcement rules.

Neither update brought back MLS pay offers or dropped the written-agreement rule.

What does California's AB 2992 require?

California added its own law. Governor Newsom signed AB 2992 on September 24, 2024, and it took effect January 1, 2025, per the DRE licensee advisory. It applies to buyer's agents for any real property, not only MLS homes.

Key points:

• Timing: sign as soon as practicable, and no later than your written offer.
• Contents: the agent's pay, the services provided, when pay is due, and an end date.
• Length: no more than three months after signing.
• Renewal: no automatic renewal; an extension takes a new signed writing, per Real Estate News. DRE rules add that it must be dated and signed before the original agreement expires.

The Department of Real Estate adopted regulations that took effect January 1, 2026, per the OAL approval notice. They define three months as 90 calendar days, counted from the day after the last signature. They presume an agreement can be signed before a showing, including a virtual one. The three-month cap does not apply to corporations, LLCs or partnerships.

The DRE's consumer alert also reminds buyers that commissions are fully negotiable under California law.

What is the C.A.R. BRBC?

The BRBC is the Buyer Representation and Broker Compensation Agreement from the California Association of REALTORS (C.A.R.). C.A.R. presented it to agents in July 2024 guidance as one way to meet the August 17, 2024 written-agreement rule.

At a high level, the BRBC puts in writing what your broker will do for you, how much the broker is paid, and who may pay it. You and your agent fill in and negotiate its terms. It can be set up as exclusive or nonexclusive, according to the San Diego Association of REALTORS, which also notes the law does not require the C.A.R. form itself.

Read any agreement in full before you sign, and ask questions about anything unclear.

What does this mean for buyers and sellers today?

For buyers:

• Expect to sign a written agreement before your agent shows you homes.
• Pay is negotiable. No law or association sets a rate. Compare agents and their services.
• You can ask the seller to cover some or all of your agent's pay as part of your offer.
• Ask how pay is handled at closing. Our guide on how escrow works in California explains the closing process.
• California agents also have their own property inspection and disclosure duties. See our post on Easton v. Strassburger and the AVID.

For sellers:

• You can still choose to pay a buyer's agent or offer buyer concessions, through negotiation outside the MLS.
• Concessions like help with closing costs may still be listed on the MLS, per NAR's FAQ, if not tied to paying a buyer broker.
• Your listing agent's pay is also negotiable.

How Pleasant Hill can help

We can walk you through a buyer agreement line by line before you tour, so you know what you are signing. Start when you are ready to search homes, get a free home valuation if you are selling, or contact us. In the High Desert, reach Nancy Navarro or Dustin Bynum.

General information, not legal, tax or lending advice. Rules, fees and rates change; confirm with the agency linked above or ask us. Pleasant Hill Real Estate Group · CA DRE Corp. #01997374 · AZ Entity Lic. #LC694532000 · Equal Housing Opportunity.