Before you tour a home with an agent, ask how that agent will be paid. The National Association of Realtors settlement changed parts of that conversation, including written buyer agreements and where compensation offers can appear. It didn't establish a new commission rate. For buyers and sellers, the practical job is to understand the services, the agreed fee and who is expected to cover it.
The settlement is already in effect
NAR agreed to contribute $418 million to settle commission-related claims. A federal judge granted final approval on November 27, 2024, and the appeals court affirmed that approval on August 19, 2026. The settlement is not an admission of wrongdoing. Its main practice changes took effect on August 17, 2024.
There is no required percentage
Commissions didn't become negotiable for the first time because of the settlement. NAR says they have always been negotiable, and its guidance says they aren't set by law. An agent can propose a percentage, a flat fee or another defined arrangement. You can ask for a different offer, compare providers and decide which services are worth the proposed cost to you.
Read the agreement before the tour
Under the settlement-related rules, an MLS participant working with a buyer must have a written agreement before an in-person or live virtual home tour. That describes a specific working relationship, not a rule that every person entering any open house must sign a contract. Ask the agent to explain when the agreement begins, which homes it covers and what you're agreeing to pay.
Make the fee understandable
The compensation must be a defined amount or rate, or have an objective way to calculate it. An open-ended promise to take whatever the seller offers doesn't meet the rule. The agreement must also cap compensation from all sources at the amount or rate agreed with the buyer. Ask for a dollar calculation at a sample purchase price before you sign.
An MLS compensation field is gone
The changes prohibit offers of buyer-broker compensation on the covered Multiple Listing Services, the systems agents use to share listings. That doesn't ban a seller from helping pay the buyer's agent. NAR's seller guidance allows compensation offers outside the MLS, including through websites, flyers and social media. Buyers can ask their agent to clarify what a particular seller has offered.
Sellers still have a choice
A seller can choose to offer buyer-broker compensation. NAR requires the listing broker to obtain the seller's written approval before making a payment or agreement to pay another broker acting for buyers, with the amount or rate specified. Don't treat a prefilled line as your only option. Ask how the proposed arrangement fits the listing services and the offers you're considering.
Work out a possible shortfall
Suppose a hypothetical buyer agreement sets a fee of 2.5% on a $500,000 purchase. That is $12,500. If the seller agrees to contribute $10,000 toward that fee, the difference is $2,500. These are examples, not standard rates. Ask what the agreement makes you responsible for if the seller contributes less, and discuss the effect on your cash needs with your lender.
An open house is different
NAR says you don't need a written buyer agreement simply to visit an open house on your own or ask an agent about their services. That exception doesn't answer what happens once an agent starts working with you to tour properties. Clarify the relationship before the next step. Finding a listing online also doesn't cancel a compensation obligation you've already agreed to.
Compare the work as well as the price
Ask a few agents for clear proposals. One fee may cover locating properties, showings, offer preparation and negotiation; another arrangement may include fewer services. Check what is included, what costs extra and when payment is due. A lower advertised rate won't tell you the total cost if the service lists differ. Keep the written proposals so you can compare the same tasks.
Compensation and concessions are separate
NAR distinguishes compensation for a buyer's broker from other seller concessions, such as help with closing costs. Sellers can still offer those concessions on the MLS. If an offer involves both, ask for each amount and purpose to be identified clearly. Don't assume every credit can cover every expense; ask your lender how the proposed terms affect your loan and closing cash.
Check the ending as carefully as the beginning
Read the agreement's duration, renewal and termination terms. Ask if a fee could still be owed on a later purchase after the relationship ends, and which circumstances would trigger it. Keep a signed copy and get agreed changes in writing. If a clause is unclear, seek advice from an attorney familiar with your state's rules before signing. The settlement doesn't promise a cheaper home or a particular commission saving.
