The National Association of REALTORS® (NAR) does not set commissions – they are negotiable.
The The National Association of REALTORS® (NAR) emphasizes that commissions are negotiable, not dictated by NAR. A litigated rule mandates listing brokers to communicate compensation offers, even if it’s zero. NAR strictly prohibits MLSs, associations, and brokers from suggesting or setting compensation amounts. A proposed settlement agreement includes a new MLS rule prohibiting broker compensation offers. However, commissions remain negotiable, as before. The Handbook on Multiple Listing Policy specifies that listing brokers (representing the seller), must disclose compensation offered to other MLS participants, ensuring transparency.
Brokers retain the discretion to determine compensation amounts for various agents or brokers. This reaffirms NAR’s commitment to fair and negotiable commissions in the real estate industry.
Source: National Association of REALTORS®; California Association of REALTORS®