The August 2024 NAR Settlement snuck in like a thief; I wasn't prepared for the immediate changes; the buyer representation paperwork and the commission talks were rough at first. I knew there were new rules, but I picked them up as I moved forward. I reacted to the changes at first; I just did the how and didn't wonder about the why.
I finally slowed down enough to wonder about the "why" and was surprised at the number of changes. Lots of new rules, lots of clarifications, and even a "struck" here and there.
Added:
NAR wanted to make sure so sure we all follow the new rules they codified them. Standards of Practice 1-12 and 1-13 now explicitly require agents to disclose that "broker compensation is not set by law and is fully negotiable." This single mandated sentence destroys the foundation of "standard commission" and forces an uncomfortable negotiation at the moment you're trying to build trust.
The impact is immediate during listing appointments. What used to be a "standard chat about commission" has become, "a strategic consultation about market positioning, net proceeds, compensation to the buyer's agent, and fee justification" saga.
Instead of "We typically charge 5%," you're now saying, "Commission is negotiable; let's discuss what makes sense for your property."
Clarified:
Standards of Practice 1-16 and 3-9 now score a vivid line between listing and cooperating broker responsibilities. Listing brokers "establish" property access terms; cooperating brokers follow them. Meaning listing brokers make the rules about when, how and why properties can be accessed.
Another section clarified, Standard of Practice 10-5 tightened up the definition of harassment to: professional conduct that creates a "hostile, abusive, or intimidating environment" affecting access to services.
This clarification, alongside the revised Professional Standards Policy Statement 29, limits ethics enforcement to "real estate-related activities." Your private rants are no longer NAR's business—but your professional conduct remains fair game.
Read here: your Twitter rants are safe; your professional pressure tactics are not.
Deleted:
The rule that forbade buyer agents from using the actual purchase offer document as leverage to renegotiate their compensation. This rule was deleted because it had become unenforceable in markets like mine—the East Bay of SF Bay Area—where multiple offers were born and leverage was constantly tested.
I barely remember this as it wasn't really, "a thing" in my market—I saw it every now and then but, in the market, where multiple offers were born, yeah… no.
As an example, listing agent's property is languishing; seller is offering 5%; 2.5% to either side. A buyer's agent would offer to submit an offer if their compensation was bumped up to 3%. Sounds like extortion but it happened ergo the rule.
For Now
NAR codified these rules because the settlement forced transparency they'd been avoiding for decades. Resist it or recognize it as permission to build a practice on transparency instead of convention. The rulebook didn't just change—it evolved to make sure that the NAR won't violate the terms of its agreement en toto by being able to punish us, its members. The agents who do that won't be scrambling to interpret the next amendment.
