What the 2024 NAR Settlement Changed for Utah Buyers and Sellers

In March 2024, the National Association of Realtors (NAR) reached a settlement in a series of antitrust lawsuits challenging how real estate agent commissions were structured and disclosed in home sales. The settlement took effect in August 2024 and changed several practices that had been standard in the industry for decades.

This article explains what changed, what it means in practice for buyers and sellers in Utah, and what stayed the same. It does not cover the legal proceedings themselves in depth — the focus is on the procedural changes that affect how residential real estate transactions work.

This article describes rules and practices as of August 2024. Real estate industry practices continue to evolve in response to the settlement. The settlement terms govern NAR members and participating MLSs; practices may vary for non-member brokerages.

What the settlement required

The NAR settlement included two primary rule changes that took effect August 17, 2024, for all MLSs (Multiple Listing Services) affiliated with NAR:

1. Sellers are no longer required to offer buyer agent compensation through the MLS.

Before the settlement, listing a home on most MLS systems required the seller (or their listing agent) to include an offer of compensation to buyer's agents. That offer — typically expressed as a percentage of the purchase price — was embedded in the MLS listing and visible to buyer's agents when they searched for properties.

After August 17, 2024, MLS rules affiliated with NAR prohibit listing buyer agent compensation offers on the MLS. Sellers can still choose to offer compensation to buyer's agents, but that offer cannot appear in the MLS listing itself.

2. Buyers must sign a written representation agreement before an agent can tour homes with them.

Before the settlement, buyers commonly worked with agents for weeks — touring properties, getting market analysis, receiving guidance — without a written agreement defining what the agent would be paid or what services they would provide.

After August 17, 2024, NAR member agents are required to have a signed written agreement with a buyer before touring any home. That agreement must specify the agent's compensation: the amount, how it's calculated, and who pays it.

What changed for sellers

The MLS listing requirement is gone

Before August 2024, listing a property on most Utah MLS systems required including an offer of buyer agent compensation in the listing. That offer was typically 2.5% to 3% of the purchase price — rates are negotiable and vary by market, but this range dominated most NAR-affiliated systems.

After August 2024, sellers listing on NAR-affiliated MLSs cannot include buyer agent compensation offers in MLS fields. The offer is no longer part of the listing data that buyer's agents see when searching for properties.

Sellers can still offer buyer agent compensation — just not in the MLS

The rule change affects where buyer agent compensation is disclosed, not whether sellers can offer it. Sellers can still choose to offer compensation to buyer's agents. The difference is how that offer is communicated:

• It can be offered in the purchase contract negotiations, as a seller concession
• It can be advertised through channels other than the MLS (listing websites, direct communication with agents)
• It can be negotiated as part of an individual offer

A buyer whose agent requires compensation from the seller can make that a term of their offer. The seller evaluates it like any other term — price, closing date, contingencies, compensation ask — and accepts, counters, or declines.

What this means in practice for sellers

Sellers who previously offered 2.5% to 3% to buyer's agents automatically had that cost built into the economics of the deal. After the settlement, sellers have explicit decisions to make:

• Whether to offer buyer agent compensation at all
• If so, how much
• Whether to advertise that offer outside the MLS, and how

Some sellers choose to offer nothing, leaving buyers to negotiate compensation with their own agents. Some offer a fixed dollar amount or a lower percentage. Some continue to offer the pre-settlement norm. The choice is now an explicit one rather than a default built into the MLS listing.

For a full breakdown of how commission costs have worked and how they've changed, see how much real estate agents cost in Utah.

What changed for buyers

Buyers must sign a representation agreement before touring with an agent

Before August 2024, a buyer could walk through dozens of homes with a buyer's agent without ever signing a written agreement. The agent's compensation was typically not discussed explicitly — it was assumed to come from the seller's MLS-listed offer.

After August 2024, NAR member agents must have a signed written buyer representation agreement before showing any home to a buyer. The agreement must specify:

• The services the agent will provide
• The compensation the agent expects to receive
• How that compensation is calculated (percentage of purchase price, flat fee, or other)
• Who is responsible for paying it if the seller doesn't offer enough to cover it

The buyer representation agreement

The buyer representation agreement is a contract between the buyer and the buyer's agent (or their brokerage). It defines the professional relationship — essentially: I will search for and help you purchase a home; here is what I charge.

Key things the agreement addresses:

Duration. How long the agreement lasts — it might be for a single showing, for a defined period, or for a specific transaction.

Exclusivity. Whether the buyer is committed to working with only this agent during the agreement period, or whether they can work with multiple agents.

Compensation amount. The agreement must specify a definite compensation amount or formula — a percentage, a flat dollar amount, or a range. The agent cannot simply say "whatever the seller offers."

Compensation source. The agreement specifies who pays the agent. If the seller offers compensation at or above what the buyer's agent agreement requires, the seller's offer typically covers it. If the seller offers less than the agreement requires, the buyer may be responsible for the difference. This is negotiable between buyer and seller in the purchase contract.

Buyers should read the buyer representation agreement before signing. The terms vary between agents and brokerages.

What this means in practice for buyers

The practical effect for buyers depends on the market and the specific agreement:

Touring homes now requires a formal commitment. A buyer who wants to see a property with an agent needs a signed agreement first. The terms of that agreement — how long it lasts, how much the agent earns — matter.

Compensation is now an explicit negotiation point. If a seller isn't offering buyer agent compensation, the buyer's agent's fee doesn't automatically get paid by anyone. Buyers and sellers negotiate it like other contract terms.

Cash buyers and buyers without agents are unaffected by the touring requirement. The requirement applies to NAR member agents. Buyers who tour properties on their own or directly with listing agents aren't subject to it.

What stayed the same

Commission rates remain negotiable

Commission rates were negotiable before the settlement and remain negotiable. The settlement didn't cap or set rates — it changed how they're disclosed and offered, not the amounts themselves.

Sellers can still list with a full-service agent, a flat-fee service, or no agent

These options existed before the settlement and continue to exist. The settlement didn't change what sellers can do — only how buyer agent compensation is communicated through MLS systems.

Buyers can still buy without a buyer's agent

Buyers have always been able to purchase without agent representation. The settlement didn't change that. A buyer who tours a FSBO property independently or submits an offer directly to a seller (or through a platform) without using a buyer's agent isn't subject to the buyer representation agreement requirement — because there's no agent involved.

The REPC remains the standard contract in Utah

The Utah Real Estate Purchase Contract is still the standard document for residential transactions. The settlement didn't change its structure or terms — it changed how compensation is addressed in the negotiation that produces the contract. For a section-by-section walkthrough of the REPC, see the REPC guide tool or the Utah REPC guide.

Title, escrow, and closing work the same way

The title company's role, the closing process, and the documents required to transfer ownership are unchanged by the settlement. For a walkthrough of what happens between accepted offer and closing day, see what happens after offer accepted in Utah.

How these changes affect unrepresented buyers and sellers

For buyers and sellers who choose to navigate a transaction without traditional agent representation, the settlement's practical effects are more limited:

• An unrepresented seller is no longer required by MLS rules to offer buyer agent compensation — but an unrepresented FSBO seller was never required to list on the MLS in the first place
• An unrepresented buyer doesn't need a buyer representation agreement because there's no agent to sign one with
• The transaction mechanics — the purchase contract, due diligence, title, and closing — work the same way for unrepresented parties as they did before the settlement

For an overview of what FSBO transactions look like from both the buyer's and seller's side, see the FSBO Utah guide. For a look at how a private sale between parties who already know each other works, see selling your home to someone you already know.

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Frequently asked questions

Do buyers have to pay their agent out of pocket after the settlement?

Not necessarily. Sellers can still offer to pay buyer agent compensation — they just can't list that offer in the MLS. If a seller offers compensation that covers the buyer's agent's fee, the buyer doesn't pay it out of pocket. If the seller doesn't offer enough to cover the agent's fee as specified in the buyer representation agreement, the buyer may be responsible for the difference. This varies by transaction and is negotiated between the parties.

Can a buyer still ask the seller to pay their agent's commission?

Yes. A buyer can include a request for seller-paid buyer agent compensation as part of their offer. Sellers evaluate it like any other offer term. In some markets, sellers who want to attract buyers with agents offer compensation proactively. In others, they don't — and buyers negotiate it as part of their offer.

Does the settlement apply to all real estate transactions in Utah?

The settlement rules apply to NAR members and to MLSs affiliated with NAR. Residential real estate in Utah operates largely through NAR-affiliated brokerages and MLSs, so the settlement's rules apply to the large majority of transactions in practice. Non-member brokerages are not bound by the settlement terms, though market practices are shifting broadly regardless of membership.

Are commission rates lower after the settlement?

There's no definitive answer — commission rates are negotiable, as they've always been, and practices vary significantly by market and brokerage. Some sellers are paying less in total commission because they're offering less buyer agent compensation or none. Some buyers are negotiating directly with their agents for lower rates. The market is still adjusting.

What is a buyer representation agreement, and is it required?

A buyer representation agreement is a contract between a buyer and a buyer's agent defining the services the agent will provide and the compensation they expect. After August 2024, NAR member agents are required to have a signed agreement before touring any home. The specific terms — duration, exclusivity, compensation amount — vary between agents and brokerages and are negotiable.

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This article is for informational purposes only and does not constitute legal, financial, or real estate advice. Settlement terms and industry practices continue to evolve — consult with a licensed real estate professional or attorney for guidance specific to your situation and the current state of applicable rules.