Few trade associations have faced the kind of year the National Association of Realtors just had. Between a $418 million antitrust settlement that took effect in August 2024 and the quiet fall of its long-standing commission rules, the 116-year-old organization is navigating what may be its most consequential moment since the first Code of Ethics was adopted in 1913.

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Members: 1.5 million ·
Founded: 1908 ·
Headquarters: Chicago, Illinois ·
Annual Dues: Varies by board (approx. $150–$1,000) ·
Code of Ethics: Yes, enforced ·
Lawsuit (2023): Settlement over commission practices

Quick snapshot

1Confirmed facts
2What’s unclear
  • How the settlement will reshape commission structures over the long term
  • Whether the DOJ will pursue additional enforcement actions beyond the current case
  • How many smaller brokerages will adjust their fee models under the new rules
3Timeline signal
4What’s next
  • NAR faces ongoing monitoring of compliance with settlement terms
  • Buyer-agent relationships will shift to written agreements before any home tour
  • Commission transparency is now mandated, but fee negotiation remains individual
Why this matters

For the first time in decades, home buyers in the U.S. will be required to sign a written agreement with their agent before stepping inside a property — and the amount the agent earns must be stated in objective terms, not left open to whatever the seller offers. That single shift changes the economics of every residential transaction.

Key facts about the National Association of Realtors:

Key facts about the National Association of Realtors
Label Value
Full Name National Association of Realtors
Founded 1908
Headquarters Chicago, Illinois, USA
CEO Bob Goldberg (as of 2023)
Membership ~1.5 million
Revenue Approximately $350 million (2022)
Trademark REALTOR

What happened with the National Association of Realtors?

What was the NAR lawsuit about?

The legal fight centered on how real estate commissions were advertised and split. The Sitzer/Burnett class-action suit, filed in 2019, challenged NAR’s commission-handling rules as anticompetitive — specifically the “cooperative compensation” rule that required listing brokers to offer a blanket commission to buyer agents on multiple listing services (MLS). On October 31, 2023, a Kansas City jury returned a $1.8 billion verdict against NAR and several large brokerages, as reported by the Ohio Bar Association (state bar authority).

That verdict triggered a cascade. The broader settlement pool — involving NAR, Anywhere, RE/MAX, Keller Williams, and HomeServices of America — eventually exceeded $876 million in total payments, according to one industry overview from NEIrelo (real estate industry analysis). But NAR’s portion alone was set at $418 million, confirmed by the dedicated Real Estate Commission Litigation (settlement website) for the Burnett case.

“Written agreements are required for both in-person and live virtual home tours — and they must state compensation in objective terms such as a flat fee, percent, or hourly rate.”

— NAR Settlement Fact Sheet, August 2024

What was the settlement?

Announced in March 2024, the NAR settlement resolved claims brought on behalf of home sellers related to broker commissions, according to NAR’s own National Association of Realtors (official site). Key policy changes took effect on August 17, 2024: offers of compensation are no longer allowed on MLS platforms, written buyer agreements are required before any in-person or live virtual home tour, and those agreements must disclose the agent’s compensation in objective terms (flat fee, percentage, or hourly rate). The Pennsylvania Association of Realtors (state-level association) confirmed that its standard forms also changed on August 1, 2024, to accommodate the new requirements.

NAR’s official position is that broker fees and commissions remain fully negotiable and are not set by law — the settlement merely mandates transparency, not price controls.

Bottom line: The NAR lawsuit settlement is not just a payout — it rewrites the rulebook for how buyer agents get paid in America. Anyone buying a home now faces written contracts and explicit fee disclosures before touring a single property.
The trade-off

Buyers get price transparency they never had before. But they also lose the old system where the seller implicitly covered the buyer’s agent commission — meaning some buyers may now have to pay their agent out of pocket unless they negotiate that cost into the purchase agreement.

The implication: home buyers must now adjust to a new reality where agent compensation is explicit and negotiable.

What is the purpose of the National Association of Realtors?

Why was NAR founded?

The National Association of Realtors was founded in 1908 as the National Association of Real Estate Exchanges. Its original mission: to standardize real estate practices across the U.S. and create a unified professional identity. From that foundation came the first Code of Ethics in 1913 — a document that remains the backbone of membership today. NAR moved to its Chicago headquarters in 1972, according to historical records available through NAR (trade association history).

What does NAR do for its members?

NAR provides three primary functions. First, it sets and enforces a Code of Ethics that all REALTOR members must follow — a binding professional standard beyond state licensing requirements. Second, it advocates for property rights and housing policy at the federal and state levels, including lobbying on mortgage interest deductions and zoning reform. Third, it supplies market data, research reports, and continuing education to its 1.5 million members. The association also runs a political action committee (RPAC) that supports candidates aligned with its policy positions.

Membership dues fund these activities. Individual dues vary by local board but typically range from $150 to $1,000 annually, with a portion sent to the national organization. In 2022, NAR reported revenue of approximately $350 million.

  • Code of Ethics enforcement: binding on all members (NAR (Code of Ethics page))
  • Advocacy on property rights and housing policy (NAR advocacy arm)
  • Market data and professional development programs
  • RPAC political contributions to candidates
Bottom line: NAR exists to professionalize, lobby for, and represent real estate agents at a national scale. For members, the trade-off is clear: pay dues and follow the ethics code in exchange for market data, advocacy, and the REALTOR trademark.

What this means: membership in NAR is a voluntary commitment to higher standards, backed by financial and political resources.

What is the difference between a REALTOR and a real estate agent?

Six key distinctions separate a REALTOR from a generic real estate agent. The short version: every REALTOR is a real estate agent, but not every agent is a REALTOR.

REALTOR vs. real estate agent: comparison
Attribute REALTOR Real Estate Agent
Definition Trademarked membership designation for NAR members Generic term for a licensed real estate salesperson
Membership required Must join NAR and local board No; only state license required
Code of Ethics Bound by NAR Code of Ethics (enforceable) Bound only by state licensing laws
Fees Pays NAR dues (varies by board) No NAR dues; may pay local board fees if they join
Trademark use May use “REALTOR” trademark Cannot use “REALTOR” legally
Continuing education NAR offers training and professional development Only state-required CE hours

What are the requirements to use the REALTOR trademark?

The term “REALTOR” is a federally registered trademark owned by NAR. To use it, an agent must become a member of NAR through a local Realtor board or association, pay membership dues, and agree to abide by the Code of Ethics. The NAR (Code of Ethics page) states that violations can result in fines, ethics training mandates, or suspension of membership.

Does every real estate agent have to join NAR?

No. Only agents who want to use the REALTOR trademark and access NAR member benefits need to join. Many agents choose to stay out of NAR — they are licensed real estate agents but not REALTOR members. According to NAR’s own data, approximately 1.5 million agents are members, but total U.S. real estate license holders exceed 3 million, meaning roughly half of all licensed agents are not REALTORS.

The implication: when a buyer hires a REALTOR, they get someone who has agreed to a professional ethics code beyond the state minimum. When they hire a non-member agent, they get someone who meets only the legal baseline.

Bottom line: REALTOR is a brand, not a license. Buyers who want the ethical safety net of a Code of Ethics should look for the REALTOR trademark. Agents who skip NAR save on dues but lose the credibility and enforcement structure that the designation carries.

The catch: agents who opt out of NAR avoid dues but also forgo the ethical oversight that comes with the REALTOR designation.

What is the most common complaint filed against REALTORS?

How are complaints handled by NAR?

Complaints against REALTORS are processed through local Realtor boards under the Code of Ethics. The process begins with an informal mediation attempt, then proceeds to a formal ethics hearing if unresolved. The most common complaint category, according to NAR’s annual ethics survey data, involves failure to disclose property defects — followed by disputes over commission and agency representation.

What are the consequences for ethics violations?

Penalties range from a letter of warning to fines (up to $15,000 for NAR violations) to mandatory ethics coursework and, in severe cases, suspension or termination of membership. Local boards have discretion over specific penalties, but the national structure ensures that members face real consequences for breaching the Code of Ethics. According to NAR’s NAR (Code of Ethics page), all members must complete ethics training every two years as a condition of membership.

  • Most common: failure to disclose property defects
  • Second most common: commission disputes
  • Third: agency representation conflicts
  • Maximum fine: $15,000 per violation
Bottom line: The ethics process is real — up to a $15,000 fine plus membership loss. For home buyers, the lesson is simple: if your REALTOR withholds a known defect, there’s a grievance mechanism that actually works.

The implication: the Code of Ethics provides a real enforcement mechanism for buyers who feel wronged.

What is a red flag in real estate?

How does NAR help identify red flags?

NAR provides educational materials on ethical practice, including guides on disclosure obligations and fair housing compliance. While NAR does not issue “red flag” checklists directly, its Code of Ethics creates a framework where flagging potential issues — from unlicensed agents to pressure tactics — is expected of members. The association’s National Association of Realtors (official site) also publishes buyer and seller guides that address common pitfalls.

What should buyers watch for in transactions?

Common red flags include pressure to sign documents quickly without reading them, unusually low appraisals that don’t match the contract price, agents who avoid written agreements (now illegal under the new settlement rules), and unlicensed individuals offering to represent either party. Another major red flag: an agent who cannot or will not explain how they get paid — under the new rules, this must be disclosed in writing before any property tour.

“The $1.8 billion jury verdict was a wake-up call for the industry. The settlement fundamentally changes how commissions are handled.”

— Ohio Bar Association, Practice Resource Summary, 2024

“PAR standard forms changed because of the broker commission settlement. The new forms took effect on August 1, 2024, ahead of the August 17 deadline.”

— Pennsylvania Association of Realtors, Member Update

The takeaway for buyers: if an agent won’t put compensation in writing before showing a house, that’s no longer just a red flag — it’s a violation of the settlement terms that apply to every REALTOR in the U.S.

What to watch

Buyers who negotiate their own compensation directly with an agent will now see that cost clearly on paper — and they need to understand that this new transparency doesn’t guarantee the seller will cover it. The old assumption that the buyer’s agent is “free” is gone.

Timeline: Key events in NAR history

  • — NAR founded as National Association of Real Estate Exchanges (NAR (trade association history))
  • — First Code of Ethics adopted (NAR (trade association history))
  • — NAR moves to Chicago headquarters (NAR (trade association history))
  • — DOJ sues NAR over commission rules (Ohio Bar Association (state bar))
  • — Sitzer/Burnett jury returns $1.8 billion verdict (Ohio Bar Association (state bar authority))
  • — NAR announces $418 million settlement (National Association of Realtors (official site))
  • — Settlement policy changes take effect (National Association of Realtors (official site))

Confirmed facts

  • NAR membership is 1.5 million (National Association of Realtors (official site))
  • 2023 Sitzer/Burnett verdict was $1.8 billion initially (Ohio Bar Association (state bar authority))
  • NAR settlement amount is $418 million (Real Estate Commission Litigation (settlement website))
  • New commission rules took effect August 17, 2024 (National Association of Realtors (official site))
  • Written buyer agreements are now mandatory before home tours (National Association of Realtors (official site))
  • NAR enforces a Code of Ethics with penalties up to $15,000 (NAR (Code of Ethics page))

What’s unclear

  • Exact long-term impact on commission rates
  • Whether DOJ will pursue further action
  • How smaller brokerages will adapt fee models
  • How many agents will choose to leave NAR rather than comply
  • How the settlement will reshape commission structures over the long term
  • Whether the DOJ will pursue additional enforcement actions beyond the current case

For home buyers and sellers in the U.S., the choice is now starker than ever: work with a REALTOR who operates under a binding Code of Ethics and the new transparency rules, or work with an unaffiliated agent who answers only to state licensing. The National Association of Realtors (official site) has published detailed guidance on what the settlement changes mean for both sides of the transaction. Meanwhile, the Real Estate Commission Litigation (settlement website) continues to track the case’s implementation. For anyone buying a home in 2025, the implication is clear: read the buyer agreement before you tour, or risk paying for transparency you didn’t know you needed.

Additional sources

youtube.com, nar.realtor

The legal battle culminated in a NAR settlement explained that changed how agents are compensated.

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Frequently asked questions

Is the National Association of Realtors a government agency?

No. NAR is a private trade association. It is not part of any government body, though it does lobby governments on real estate policy.

How do I file a complaint against a REALTOR?

Contact the local Realtor board where the agent holds membership. They will guide you through the ethics complaint process under the NAR Code of Ethics.

What is the NAR Code of Ethics?

A set of 17 Articles of professional conduct that all REALTOR members must follow. It covers duties to clients, the public, and other agents, and includes enforcement mechanisms.

How does the NAR lawsuit affect home buyers?

Starting August 17, 2024, buyers must sign a written agreement with their agent before touring any property. The agreement must disclose the agent’s compensation in objective terms — a flat fee, percentage, or hourly rate — rather than leaving it open to seller offers.

Can you be a real estate agent without being a REALTOR?

Yes. You only need a state real estate license to practice as an agent. The REALTOR designation is voluntary for those who join NAR.

What are NAR membership dues used for?

Dues fund advocacy, market research, professional development, the Code of Ethics enforcement system, and the REALTOR Political Action Committee (RPAC).

Does NAR set commission rates?

No. NAR’s official position is that commissions are negotiable between agents and their clients. However, the industry’s old cooperative compensation rules had the effect of standardizing rates — which is exactly what the antitrust lawsuits challenged.