The powerful realtor group agreed to pay the sum to settle several lawsuits from home sellers, NAR announced Friday. Home sellers had alleged that the NAR’s commission rules forced them to pay excessive fees, according to The New York Times.
“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers,” Nykia Wright, the NAR’s interim CEO, said in a statement. “It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals.”
The NAR said it “continues to deny any wrongdoing” related to the compensation-sharing system and that offers of broker compensation “continue to be an option consumers can pursue” outside that system.
“Offers of compensation help make professional representation more accessible, decrease costs for home buyers to secure these services, increase fair housing opportunities, and increase the potential buyer pool for sellers,” the association argued.
The settlement’s changes to the compensation-sharing system will likely lead to a significant drop in commissions for home sales.
Slashing commissions could ultimately help bring down housing prices, which skyrocketed since the pandemic started four years ago.
The Hill’s Julia Shapero has more here.
