Nar Settlement Ca Impact

NAR Settlement Impact on California Real Estate Exam: California Real Estate Salesperson Last Updated: June 2026 --- ## Overview of the NAR Settlement The National Association of Realtors reached a landmark settlement in March 2024 that fundamentally changed how buyer agent compensation works in U.S. real estate transactions. California's response — including AB 2992 and C.A.R. form updates — is heavily tested on the current California exam. --- ## The Settlement — Key Facts | Item | Detail | |---|---| | Settlement amount | $418 million | | Announced | March 15, 2024 | | Agreed to pay | NAR and cooperating MLSs | | Practice change effective date | August 17, 2024 | | Plaintiffs | Missouri home sellers (Sitzer/Burnett case) and related class actions | | Core allegation | NAR rules artificially inflated commissions by requiring sellers to offer buyer broker compensation through MLS | > Exam Tip: The $418 million and August 17, 2024 dates are commonly tested. The settlement applies to NAR members and affiliated MLSs — which covers the vast majority of U.S. real estate professionals. --- ## What the Settlement Changed — National Rules ### Eliminated MLS Compensation Offers | Before (Pre-August 17, 2024) | After (Post-August 17, 2024) | |---|---| | Listing in MLS included offer of buyer broker compensation | MLS may NOT include offers of buyer broker compensation | | E.g., "2.5% to cooperating broker" in MLS data | Compensation negotiated outside MLS | | Buyers often unaware of buyer agent fee | Buyers must be informed of fee before touring | ### Required Written Buyer Agreements - All buyers working with an NAR member agent must sign a written…