The New Realtor Commission Rules Explained
The new realtor commission rules come from the NAR settlement and took effect August 17, 2024. The headline changes: offers of buyer-agent compensation are no longer published on the MLS, written buyer agreements are required before touring, and commissions remain fully negotiable.
The new realtor commission rules come from the NAR settlement and took effect August 17, 2024. The headline changes: offers of buyer-agent compensation are no longer published on the MLS, written buyer agreements are required before touring, and commissions remain fully negotiable. Here is what each change means in plain language.
What the settlement changed
Four practice changes are the core of the new rules:
- Offers of buyer-agent compensation are no longer published on the MLS.
- Written buyer agreements are required before a buyer tours a home with an agent.
- Commissions are not set by law and are fully negotiable.
- Seller concessions may be communicated.
These changes apply to how compensation is communicated and agreed, not to the amount anyone must charge. No government body or trade group sets a commission rate.
What "no longer published on the MLS" means
Before the change, a listing could advertise how much the seller was offering to pay a buyer's broker. Buyers and their agents could see that number while searching the MLS. Under the new rules, that field is gone from the MLS.
What replaced it is direct negotiation. A seller may still choose to contribute to a buyer's costs, including buyer-agent compensation, through a concession. That concession can be communicated and negotiated in the offer, just not published in the MLS listing. For buyers, this means the compensation question is handled with their own agent rather than discovered in a listing feed.
Written buyer agreements
Before touring a home with an agent, a buyer now signs a written agreement. The agreement should spell out the services the agent will provide, the term of the agreement, the compensation, and whether it is exclusive. These terms are negotiable. An agreement can be limited to a single property or a short window, or it can cover a broader search, depending on what the buyer and agent agree.
Read the agreement before signing. Pay attention to the length of the term, how to cancel, and how compensation interacts with anything the seller offers. If a term does not fit your situation, ask to change it.
Commissions were always negotiable
Real estate commissions have always been negotiable and are not set by law or any government schedule. Antitrust enforcers have long held that competing brokers may not agree on commission rates, and the settlement reaffirmed that compensation is a consumer-by-consumer negotiation. There is no official rate and no official average published by the government.
That means the fee is a business term. You can discuss the rate, the services, the term, and the conditions. Whether a brokerage is willing to move depends on its costs and your leverage, but nothing prevents the conversation.
Seller concessions explained
A concession is a seller-paid contribution toward the buyer's costs. It can be used for closing costs, prepaid items, or buyer-agent compensation, depending on what the parties agree and what the lender allows. Concessions are negotiated as part of the offer and can be a tool to keep a deal together when a buyer's cash is tight.
For sellers, a concession reduces net proceeds unless the price is adjusted to compensate. That is why it helps to compare offers on net, not just on headline price. For buyers, a concession can lower the cash needed at closing, but it is never guaranteed.
What did not change
| Area | Status after the 2024 changes |
|---|---|
| Seller paying the listing broker | Still typical; the listing agreement governs the amount. |
| Seller closing costs | Still commonly include title insurance, transfer taxes, escrow, and prorated taxes. |
| Negotiability | Unchanged: commissions are fully negotiable and not set by law. |
| Agency and disclosure | Still governed by state law and brokerage policy. |
| MLS participation | Still governed by local MLS rules, subject to the settlement changes. |
How the changes affect listing agents and sellers
For listing agents, the biggest operational change is that compensation to a buyer's broker is no longer advertised in the MLS. That means the listing agent cannot point to a published offer when talking with a buyer's agent. Instead, if the seller is willing to contribute, that willingness has to be communicated and negotiated deal by deal.
For sellers, the change adds a decision: whether to offer a concession at all, and how much. Some sellers will choose to offer nothing and let buyers cover their own agents. Others will use a concession to attract buyers who are stretched on cash. Either approach is allowed, and both are negotiable.
Timeline of the practice changes
| Date | Change |
|---|---|
| August 17, 2024 | Offers of buyer-agent compensation are removed from the MLS, written buyer agreements are required before touring, and seller concessions may be communicated. |
| Ongoing | Commissions remain fully negotiable and are not set by law; state law and local MLS rules continue to apply. |
Because implementation varies by MLS and brokerage, ask your local association or your agent how the rules are being applied in your market. Buyers should also expect to sign an agreement earlier in the process than they might have before, sometimes at the first showing. That agreement is negotiable, and it is worth reading rather than signing on the spot.
What to check in your paperwork
- The compensation amount or rate and how it is calculated.
- Which services are included and which cost extra.
- The length of the agreement and the cancellation terms.
- How buyer-agent compensation is addressed, if at all.
- Whether a concession is possible and who decides.
- What happens if you find the buyer or seller yourself.
Ask for these points in writing. If an agent will not put a term in writing, that is useful information about how the relationship will work. For the definitions behind these terms, see the realtor commission rules reference and the official NAR settlement FAQs.
This guide is general information, not legal or financial advice. Rules and practices vary by state, MLS, and brokerage.
Frequently asked questions
What are the new realtor commission rules?
Effective August 17, 2024, offers of buyer-agent compensation are no longer published on the MLS, written buyer agreements are required before touring, commissions are confirmed as fully negotiable, and seller concessions may be communicated.
Are commissions capped or set by the new rules?
No. The rules do not set, cap, or fix commissions. They changed how compensation is communicated and agreed, and they confirm that commissions are negotiable.
Do buyers have to sign an agreement before viewing a home?
Yes. Under the practice changes, a written buyer agreement is required before touring a home with an agent. The agreement's services, term, and compensation are negotiable.
Can a seller still pay the buyer's agent?
Yes. A seller can contribute to buyer-agent compensation through a concession. It is negotiated in the offer rather than published on the MLS.
What is a seller concession?
It is a seller-paid contribution toward the buyer's costs, which can include closing costs, prepaid items, or buyer-agent compensation, subject to what the parties agree and the lender allows.
Where can I read the official rules?
The NAR settlement FAQs explain the practice changes, and the DOJ antitrust case page provides background. State law and local MLS rules also apply.
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Cite this page
ListWithAgent Editorial Team. “The New Realtor Commission Rules Explained.” https://listwithagent.com/learn/new-realtor-commission-rules/. Accessed 2026-09-12.
Sources
- DOJ Antitrust Division — U.S. v. National Association of Realtors — U.S. Department of Justice — justice.gov
- NAR — Settlement FAQs: practice changes for buyers and sellers — National Association of REALTORS® — nar.realtor
Every figure and rule on this page traces to the official publishers above. See our methodology.
Not a brokerage and not advice. List With Agent is not a real estate brokerage. We are an independent marketing and referral service that connects home sellers with licensed real estate agents. This page is general educational information, not legal, financial, or real estate advice.
By the ListWithAgent Editorial Team. Last updated 2026-09-12. Educational information only — not legal, financial, or real estate advice.