In a landmark decision, the NAR announced its plan to settle pending antitrust cases that will reshape the landscape of real estate transactions, especially affecting how commissions are structured. This change is set to come into effect in July 2024 and may influence the home buying process for those utilizing VA loans.

The settlement includes several key changes to the rules of Multiple Listing Services (MLS), including:

Prohibition of Seller and Listing Broker Compensation Offers on MLS:

This change prevents sellers and listing brokers from offering compensation to buyers or buyer brokers through MLS listings.

Mandatory Buyer-Broker Agreements:

Before touring any home, a buyer must have a written agreement with their broker, detailing the compensation structure.

Transparency in Brokerage Services:

Brokerage services cannot be advertised as free or at no cost unless the broker receives no financial compensation from any source.

Disclosure of Commission Negotiability:

It's required to disclose to all potential buyers and sellers that broker commissions are negotiable and not fixed by law.

These changes, while aimed at increasing transparency and fairness in the real estate market, may introduce new challenges for veterans and active military personnel relying on VA loans, which traditionally do not allow the buyer to pay the buyer's agent commission.