NAR: 'The free market' will determine commissions 

With the August 17 deadline for industry practice changes just ten days away, NAR held a media call with reporters on Wednesday to underscore — and further clarify — some of the bigger themes of the settlement agreement, as well as tackle other issues that agents and consumers have been seeing in recent weeks. 

Here are four topics the association emphasized: 

Buyer agreements only required for Realtors using the MLS

An NAR rep reiterated that the requirement to have a signed buyer agreement before touring a property is only aimed at Realtor member agents who are using the MLS. Additionally, buyers attending open houses on their own do not need to sign a buyer agreement.

"A professional who's not using the multiple listing service or a professional who is one of those non-NAR professionals — it does not apply to them," the rep said. "It also does not require a buyer to enter into any particular type of relationship with a professional. The agreement is completely negotiable, and it must be satisfactory to both the client and the professional."

Agents should not try to skirt the rules

A rising number of new websites have cropped up recently to give homeowners and real estate professionals the ability to share and search for commission rates, but NAR was clear that it strongly opposes any attempts by member agents and association-related organizations to circumvent the settlement terms.

"NAR believes that these practice changes and the settlement continue its long service of promoting consumer empowerment, consumer choice and healthy competition," the rep said.

"Settling empowers buyers and their professionals to negotiate mutually agreed services and compensation that work for them, and it addresses the second core accusation that we've heard in the antitrust cases."

State laws trump NAR policies

In Colorado, regulators have determined in recent weeks that a buyer agreement is not required before touring a property, as showing a house is "technically not part of the brokerage duties" in the state. Instead, state regulators believe buyers should have time to evaluate agents before committing to one.

In its remarks, the association signaled that agents and consumers should look to state laws first: "NAR members, as always, still must abide by their local state laws," the rep said. 

"Local state laws trump NAR practices, and it's important that consumers, when they're interacting with their (real estate) professional, know that state laws vary and differ."

In a follow-up statement, a spokesperson for NAR added that "while NAR policy is always subject to state and local law, NAR does not believe the new policy conflicts with Colorado state law. It is possible to require a written buyer agreement for touring services that establishes that the buyer doesn't owe anything for that service and that compensation wouldn't be owed until the purchase of a property is complete."

The market will determine commission rates

NAR also reiterated that the association does not promote or set rates for agent compensation or commission, and reminded reporters that this is one of the primary themes of the settlement agreement and impetus for rule changes. The association does not have a stake in commission rates and will allow market forces to determine how agent compensation shakes out, the rep noted. 

"Commissions were negotiable before the settlement and remain so today, and as always, NAR stands by the proposition that the free market is the ultimate determinant of what happens to commission levels over time," the representative said. 

"We have seen over years, commission levels have been dropping, and NAR is agnostic as to where the commission levels are."