The NAR real estate lawsuit is a federal antitrust class action, Sitzer/Burnett v. National Association of Realtors, in which a Kansas City jury found in October 2023 that NAR and major brokerages had conspired to keep real estate commissions artificially high. The $1.8 billion verdict triggered nearly $1 billion in settlements, forced NAR to change the rules that governed how buyer agents get paid, and reshaped how homes are bought and sold across the country.1The Hill. NAR Settlement Commission Fees Housing Market
What the Lawsuit Was About
Home sellers sued in the Western District of Missouri, arguing that NAR’s “Buyer-Broker Commission Rule” forced them to pay the buyer’s agent too. The rule required listing brokers to offer blanket compensation to cooperating buyer brokers whenever a property was listed on a Multiple Listing Service. Sellers said that structure inflated commissions to supracompetitive levels because buyers never saw the bill and had no reason to negotiate their own agent down.
On October 31, 2023, the jury returned a $1.8 billion verdict. Under federal antitrust law that figure could have been tripled past $5 billion. NAR and the defendant brokerages moved to settle instead.
The NAR Settlement and the Rules That Changed
On March 20, 2024, NAR announced a $418 million settlement resolving four antitrust class actions: Burnett, Moehrl, Gibson, and Umpa.2Susman Godfrey LLP. Susman Godfrey Announces $418M Settlement With the National Association of Realtors NAR denied wrongdoing and agreed to pay in four annual installments plus interest, along with $3 million toward settlement notices.3Cohen Milstein. Home Sellers Reach Landmark $418M Settlement District Judge Stephen R. Bough granted final approval on November 26, 2024.4Pennsylvania Association of Realtors. National Lawsuit Updates
The money matters less than the practice changes, which took effect on August 17, 2024, and now apply to essentially every home sale involving an MLS.5National Association of Realtors. NAR Provides Final Reminder of August 17 Practice Change Implementation Two rules changed:
- Listing brokers can no longer advertise on the MLS what they will pay a buyer’s agent. Sellers may still offer to cover the buyer’s agent, but that negotiation happens off the MLS.
- An agent working with a buyer must sign a written representation agreement before touring any home. The agreement has to state the agent’s compensation and disclose that commissions are negotiable and not set by law.6National Association of Realtors. NAR Settlement FAQs
The point was to decouple the two commissions. Instead of the seller automatically paying both agents, buyers were expected to negotiate and, in theory, pay for their own representation.
How Much the Brokerages Paid
NAR was one defendant among many. HomeServices of America, owned by Berkshire Hathaway, struck the largest individual brokerage deal at $250 million, shielding 51 brands, roughly 70,000 agents, and more than 300 franchisees, though it did not release claims against Berkshire Hathaway itself.7Courthouse News Service. Berkshire Hathaway’s Real Estate Firm to Pay $250 Million8Hagens Berman Sobol Shapiro LLP. Real Estate Broker Commissions Antitrust Anywhere Real Estate, Keller Williams, and RE/MAX settled first, for a combined $208.5 million, and agreed that their agents would no longer be required to join NAR or follow its ethics code.9HousingWire. Judge Approves Brokerage Commission Lawsuit Settlement Agreements
Nine additional brokerages settled through the Gibson case for $110 million more, led by Compass at $57.5 million.10Real Estate Commission Litigation. Gibson Settlement Information Later waves brought in William Raveis, Hanna Holdings, Windermere, Exit Realty, and others for another $42 million. All told, seller-side settlements have topped $997 million, with over $876 million receiving final court approval.11Cohen Milstein. Moehrl v. National Association of Realtors, et al.
Can You Still File a Claim
Probably not. The main claims window has closed. The deadline for the NAR, HomeServices, Anywhere, RE/MAX, and Keller Williams settlements was May 9, 2025. A later deadline of December 30, 2025, covered William Raveis, Howard Hanna, Exit Realty, Windermere, and others.12Real Estate Commission Litigation. Frequently Asked Questions
If you did file, no per-person payout has been announced. Final amounts are calculated pro rata after attorneys’ fees and administrative costs, based on the number of valid claims. Payouts have also been held up by appeals. Eligibility was not limited to clients of the settling defendants; anyone who sold a home listed on a U.S. MLS and paid a commission during the eligible period, which generally began around October 2019, was included in the class.13Real Estate Commission Litigation. Residential Real Estate Broker Commissions Antitrust Settlements
What About Buyers
The Burnett, Moehrl, and Gibson settlements were for home sellers. Homebuyers have a separate track, Tuccori v. At World Properties, which received preliminary approval on May 26, 2026. NAR agreed to pay $52.25 million into a global fund, and total opt-in deals reached $106 million.14National Association of Realtors. Judge Preliminarily Approves Tuccori Home Buyer Class Action Settlement The settlement adds no new practice changes beyond those already in effect. If finalized, it would effectively resolve the related Batton case, which an Illinois court stayed in April 2026.15National Association of Realtors. Illinois Court Grants NAR’s Request for a Stay in Batton Case Plaintiffs in cases like Davis v. Hanna Holdings have objected that some defendants are paying too little.16Real Estate News. NAR, Elliman Opt Into Tuccori Homebuyer Settlement
Have Commissions Actually Come Down
Not really. Before the settlement, total commissions typically ran 5% to 6% of the sale price. Some analysts predicted the new rules would cut broker fees by 20% to 30%. That prediction hasn’t held up.
Redfin tracks the buyer’s agent share of commissions closely. It averaged 2.43% in the first quarter of 2024, before the settlement was announced. It dipped to 2.36% in the third quarter of 2024 when the new rules took effect. By the third quarter of 2025 it was back to 2.42%.17Redfin. Real Estate Commissions Homes above $1 million saw a modest decline to 2.22%. Homes under $500,000 saw rates rise to 2.52%.18Real Estate News. Why Today’s Market Is Driving Up Buyer Agent Commissions
The reason is practical. In a slow market, sellers who get only one offer are willing to cover the buyer’s agent to keep the deal alive. Buyers usually cannot roll their agent’s commission into a mortgage, so shifting the cost to them is hard. As Redfin’s chief economist Daryl Fairweather put it, the industry remains resistant to change because “everyone is kind of following the same norms.”19Marketplace. What Has Changed Since the Real Estate Commission Lawsuit
State Laws Are Diverging
The NAR settlement set a national floor, and states have started legislating on top of it, sometimes in opposite directions. Texas enacted a law effective January 1, 2026, requiring a written agreement with a buyer before showing any property or presenting an offer, capping non-representation arrangements at 14 days, and mandating a disclosure that commissions are fully negotiable.20Texas Real Estate Commission. What Changes in 2026 About Buyer/Tenant Representation in Texas
Alabama and Mississippi went the other way, passing laws that allow buyers to tour homes before signing a representation agreement. Oklahoma is considering similar legislation.21HousingWire. States Buyer Agency Rules What buyers are asked to sign, and when, now depends on where they are shopping.
The Case Isn’t Fully Closed
Multiple objectors appealed Judge Bough’s approval of the Burnett and Gibson settlements to the U.S. Court of Appeals for the Eighth Circuit. They argue the settlements don’t fairly compensate the class and that the district court improperly required the release of homebuyer claims as part of a seller-side settlement.22Bloomberg Law. Huge Realtor Settlement Appeals Get Probed for Fairness, Scope A three-judge panel heard oral arguments on January 14, 2026. NAR’s attorney said the organization maintained “very persuasive arguments for reversal” of the original verdict. A ruling was expected by late spring or early summer 2026, but as of mid-2026, none has been issued.23Real Estate News. Appellants Have Their Final Say About Commissions Settlements