NAR Settlement FAQs

KCREA is a CIE (Commercial Information Exchange), see below frequently asked questions regarding the NAR settlement.

https://www.nar.realtor/the-facts/nar-settlement-faqs#:~:text=Commercial%20Non%2DResidential%20Listings

Commercial Non-Residential Listings:

What do these practice changes mean for commercial practitioners?
The proposed settlement agreement—like the Sitzer-Burnett lawsuit and the copycat lawsuits—is focused on residential real estate transactions. That means most commercial transactions will not be affected.
In many markets, commercial listings appear in commercial information exchanges (CIEs) and not multiple listing services (MLSs), and do not include an offer of compensation.
The settlement prohibits offers of compensation on an MLS and requires MLS Participants working with buyers to enter into written agreements with their buyers. These practice changes will go into effect August 17, 2024.

Are commercial listing services that don’t pull from an MLS subject to the practice change prohibiting offers of compensation on an MLS?
No. That practice change prohibits offers of compensation on the MLS and it prohibits MLSs from allowing third parties to use MLS data to facilitate a platform for multiple brokerages to make offers of compensation.

Does the requirement to use a written agreement before showings apply to commercial transactions?
No. The settlement and the practice changes it requires are focused on residential transactions, not commercial transactions, or leases.

If a commercial broker who is a REALTOR® has access to an MLS, but is showing a property on CIE or another platform that is not associated with an MLS, does the requirement to use a written agreement apply for that property?
No. The settlement and the practice changes it requires are focused on residential transactions, not commercial transactions, or leases.