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Aug 26, 2025

NAR Real Estate Commission Class Action Settlement Updates August 2025

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As of August 2025, the NAR settlement claims process is 58% verified, with payouts expected following the November 2024 final approval hearing. You’re eligible if you sold a home through MLS between October 2019 and July 2025, but must submit claims by May 9, 2025 (or September 20 for recent transactions). Commission structures have changed, requiring written agreements and disclosure of terms. Additional legal challenges could still impact the settlement’s implementation.

Table of Contents

Key Takeaways

The NAR settlement has gained preliminary approval, with final approval hearing rescheduled to November 2024 from the original October date.
Approximately 58% of claims have completed initial verification as of August 2025, with documentation review ongoing.
Claims submission remains open until September 20, 2025 for eligible transactions occurring through July 22, 2025.
Commission rates have remained relatively stable at around 2.4% despite elimination of standard 6% commissions.
Tanya Monestier’s federal appeal challenging the $25-per-claimant payout versus the original $1.8 billion jury award continues.

Settlement Fund Distribution Timeline

While the National Association of Realtors’ settlement has reached preliminary approval, you’ll need to understand that the actual fund distribution follows a complex timeline spanning several years. NAR’s $418 million payment will be phased over approximately four years, with HomeServices America contributing an additional $250 million.

Before settlement fund allocation begins, administrators must confirm all policy reforms are implemented, including commission transparency requirements and written buyer agreements. Claims processing updates indicate the timeline remains contingent on final approval confirmation, expected at the November 2024 hearing. The settlement addresses legal challenges without NAR admitting to the truth of plaintiffs’ allegations. The total settlement package exceeds $980 million following the October 2023 jury verdict. Agents must now demonstrate value to justify their commissions in this new competitive environment. Additionally, eligible sellers must have sold homes between October 31, 2019, and July 22, 2025 to qualify for compensation. Once verified, your claim amount will be calculated based on your transaction history and documentation provided before the May 9, 2025 deadline.

Final Claims Processing Status

If you’ve submitted a claim for the NAR settlement, you’ll need to be aware that verification of pending claims is now underway with thorough fraud screening in progress. Your payment timeline is subject to the post-deadline verification phase, which includes eligibility confirmation and pre-disbursement reviews of all documentation. You can monitor your claim status through the official RealEstateCommissionLitigation.com portal, where administrators have established reporting channels for claim-related inquiries. Buyers should note that the settlement does not require them to pay out of pocket for buyer’s broker services, despite common misconceptions about the changes. The settlement agreement officially received final approval on November 26, 2024, setting in motion the compliance timeline for all participating MLSs. Remember that the settlement covers home sales from October 31, 2017, to July 23, 2024, with claims totaling over $730 million in compensation for inflated real estate broker commissions.

Pending Claims Status

Three stages define the current claims processing timeline within both the $44.05M and $110M settlements. Your claim currently sits in one of these phases: initial verification, documentation review, or final determination. As administrators work through the backlog, claim verification procedures prioritize transactions with complete documentation and clear eligibility markers.

If your claim remains pending, settlement administrators are likely cross-referencing your provided closing documents against MLS records. The settlement aims to increase transparency and fairness in real estate transactions. Approximately 58% of claims have completed initial verification, with remaining applications requiring additional documentation or clarification.

Those affected by pending litigation in related cases may experience delays as administrators guarantee no duplicate compensation occurs across settlements. Check your claim status through the official settlement portal, where status updates are refreshed bi-weekly.

Payment Timeline Updates

Following the conclusion of the May 9, 2025 claims submission deadline, settlement administrators have shifted into the final phase of processing and disbursement preparation across the consolidated real estate commission settlements.

With formal approval secured in November 2024, administrators are now conducting claim verification procedures against the pooled $980+ million in settlement funds. NAR’s $418 million contribution will follow a four-year payment schedule, suggesting you may receive disbursements in phases rather than a single lump sum. The settlement primarily focuses on residential transactions, with minimal impact expected for commercial real estate dealings.

While no official payment estimates have been released, the verification process is progressing on schedule. If you submitted before the deadline, no further action is required as your claim is being processed. All payments will reflect transaction-specific variables based on your documented commission payments, with administrators working to finalize distribution mechanics. Remember that the settlements include cases such as Burnett et al. v. NAR and several other related lawsuits addressing alleged antitrust violations. It’s important to understand that commission rates remain negotiable between clients and agents, as they were not set by law even before the settlement.

Eligibility Requirements & Documentation

Determining your eligibility for the NAR real estate commission settlements depends on several specific criteria that you’ll need to satisfy before submitting a claim. The eligibility criteria center around your participation in MLS-listed home sales during specific date ranges for each settlement.

You must provide:

Closing documents verifying your sale date and commission payments
Proof of MLS listing status for each property claimed
Sworn statements confirming details under penalty of perjury
Deadline compliance with either May 9, 2025 (Gibson) or September 20, 2025 (Hooper)

Remember that documentation requirements vary by settlement administrator, and you may qualify for multiple settlements if you sold properties through different MLS systems during the specified timeframes. One claim form is required for each home sold during eligible date ranges, but filing once allows you to be considered for all applicable settlements. The total settlements from these cases exceed $1 billion across all participating real estate companies and organizations.

Recent Court Rulings on Settlement Terms

The federal court has recently modified the NAR settlement’s appeals timeline, extending the claims period through March 2025 to accommodate more affected homeowners. You’ll now find a revised distribution formula that prioritizes sellers who paid commissions exceeding 5.5% during the class period. These judicial amendments reflect the court’s response to objections raised during the November approval hearings, particularly addressing concerns about equitable compensation for class members across different market regions. The settlement includes significant practice reforms aimed at increasing transparency and fairness in broker commissions, with implementation scheduled to begin on August 17, 2024.

Court Appeals Timeline

While the NAR settlement awaited final approval in October 2025, recent court rulings have established a complex appeals timeline that you’ll need to understand. The settlement’s final approval hearing represents the culmination of years of litigation and affects all of us in the real estate community.

Key court appeal timeline milestones you should know:

October 28, 2025 – Final approval hearing and deadline for settlement objections
Appeals window – Only non-settling parties retain rights to challenge rulings
NAR appeal waiver – Settlement terms prevent NAR from challenging the agreement
Claims deadlines – All eligible transactions require filing after court approval

These legal proceedings emerged from cases like Moehrl v. NAR and Burnett v. The National Association of Realtors, which challenged traditional commission structures in the industry.

The settlement fund of $44,050,000 will be distributed to eligible claimants who sold homes during the specified period and paid commissions to real estate brokerages.

Expanded Claims Period

Recent court rulings have greatly expanded the claims period for the NAR settlement, creating unprecedented opportunities for those affected by alleged anti-competitive practices. You now have until September 20, 2025, to file claims for eligible transactions dating from October 31, 2019, through July 22, 2025.

The expanded eligibility criteria embrace nationwide MLS-listed properties regardless of state-specific rules. Both buyers and sellers can potentially file claims, with no minimum commission threshold required. Documentation requirements include closing statements and commission receipts to substantiate your claim.

This multi-defendant settlement combines recovery potential from NAR ($418M), HomeServices of America ($250M), and other brokers. The claims process coordination follows strict administrator guidelines for those with interests across multiple settlements.

Modified Distribution Formula

Following significant legal challenges to the initial settlement structure, court rulings have substantially modified the NAR settlement distribution formula, creating a more equitable framework for claimants. The revised distribution mechanisms now prioritize verified transactions with documented commission payments.

As a member of the affected class, you’ll want to understand these critical changes:

Your potential award now varies based on sale date, commission amount, and geographic location
You must provide verification of both sale and commission payment for claim eligibility
New anti-fraud measures have been implemented to protect legitimate claimants
The $418 million allocation covers transactions between October 2019 and July 2025

These adjustments guarantee greater compensation transparency while protecting the integrity of the settlement fund, giving you clearer expectations about your potential recovery.

Impact on Agent Compensation Structures

The NAR settlement‘s sweeping changes to real estate compensation practices have fundamentally altered how agents structure their earnings. The elimination of standard 6% commissions means you’ll need to develop agent negotiation strategies to justify your value proposition. You’re now required to secure written agreements with buyers, explicitly outlining compensation terms.

MLS platforms no longer display commission offers to buyers’ agents, creating compensation transparency challenges that demand proactive client education. You must navigate anti-steering provisions while adapting to a competitive pricing environment where variable and tiered service models are becoming industry standards. The settlements, which exceed current value $1 billion, include agreements with multiple real estate companies beyond just NAR and HomeServices.

With the settlement’s October 2025 final approval approaching, your documentation processes require immediate attention to guarantee compliance with new disclosure requirements and to protect yourself from potential disputes in this transformed commission landscape.

Market Response to Commission Rule Changes

Real estate professionals across the market have quickly mobilized to adapt their operational practices in response to the NAR settlement‘s commission rule changes. Your industry peers are demonstrating remarkable market adaptation through streamlined processes and enhanced commission transparency.

Key market responses you’re seeing include:

Widespread adoption of standardized compliance forms for documenting negotiated compensation
Increased attorney involvement in transaction structuring across most markets
Shift from MLS-based commission disclosures to contractual negotiations between parties
Earlier execution of buyer representation agreements becoming standard practice

These adjustments reflect our collective industry commitment to maintaining transaction integrity while embracing the new regulatory framework. The change has accelerated administrative workloads but established clearer expectations for all parties involved in real estate transactions. LIBOR has created a new informational flyer for members to share with attorneys, explaining that broker compensation must now be negotiated in the contract of sale rather than through the MLS.

Remaining Legal Challenges to the Settlement

Despite the NAR settlement‘s extensive framework, significant legal challenges persist that could reshape its implementation and impact on your business operations. Tanya Monestier’s federal appeal directly questions the settlement’s consumer accountability mechanisms, arguing the $25-per-claimant payout drastically undervalues the original $1.8B jury award. Her comprehensive 136-page federal appeal challenges both the fairness and effectiveness of the settlement’s structure.

Your attention should focus on ongoing litigation against non-settling parties like eXp World Holdings, which tests the legal implications of new transparency requirements. The May 2025 claims deadline creates additional pressure as late filers forfeit compensation entirely. Meanwhile, practical enforcement challenges have emerged around commission negotiation rules and MLS listing compliance. The settlement’s structural remedies—mandatory written agreements and commission offers—face scrutiny regarding their effectiveness at addressing the antitrust violations that triggered this industry-wide transformation. Critics point out that affected homeowners received an average of only $8 from the settlement while plaintiff lawyers collected $208 million.

How Homeowners Are Benefiting From New Rules

Homeowners across the country are now reaping tangible benefits from the NAR settlement‘s sweeping transparency reforms. The elimination of hidden commission structures has created substantial homeowner advantages while maintaining market stability.

The four key benefits you’re now experiencing include:

Complete commission clarity through mandatory written agreements before representation begins
Reduced surprise costs due to upfront disclosure of all compensation terms
Enhanced negotiating power when setting commission rates without MLS-driven constraints
Financial recompense opportunities through the $44 million settlement fund for eligible sellers

These structural reforms have empowered you with greater control over your real estate transactions while ensuring your agent’s responsibilities are clearly defined. Despite these significant changes, the market has remained remarkably stable, with commission rates holding steady around 2.4%. The $418 million settlement in March 2024 has successfully resolved claims that NAR was artificially inflating commission prices while still ensuring cooperative compensation remains an option. Buyers must now engage in proactive discussions about agent compensation before making offers on properties.

What to Expect if You Haven’t Filed a Claim Yet

If you’ve yet to submit your claim for the NAR settlement, you’re facing a ticking clock with specific deadlines and requirements that’ll determine your eligibility for compensation. Remember, September 20, 2025 is your final opportunity to act—after this exclusion deadline passes, you’ll forfeit any potential benefits.

Your claim submission must include documentary proof that you sold a property listed on a U.S. MLS between October 2019 and July 2025 and paid broker commissions. One of the potential pitfalls is submitting incomplete documentation, which could jeopardize your claim.

All submissions must be made via the official settlement website “under penalty of perjury,” so accuracy is essential. With final approval pending at the October hearing, now’s the time to gather your evidence. The settlement covers sellers who listed homes on U.S. MLSs until August 17, 2024, coinciding with NAR rule changes.

Frequently Asked Questions

Can International Property Owners Who USed US Brokers File Claims?

Yes, you’re eligible if your international property ownership involved U.S. transactions through U.S. brokers, meeting broker regulations for MLS listings and commission payments within the specified timeframe for international claims.

How Are Settlement Payments Taxed for Recipients?

Settlement payments will be taxed as ordinary income for you. Consider the tax implications when determining your settlement eligibility, as you’ll need to report this on Schedule 1 and prepare for 1099 issuance.

Will Unclaimed Settlement Funds Be Redistributed to Verified Claimants?

No, unclaimed funds won’t automatically be redistributed to verified claimants. The redistribution process requires specific court authorization, which isn’t explicitly mentioned in current settlement provisions for eligible participants.

Can Estates File Claims for Deceased Homeowners Who Sold Property?

Yes, you can file estate claims for deceased homeowners if you have legal authority documentation, death certificate, and property records for sales between October 2019 and July 2025 involving MLS listings.

Are Home Sales Through Auction Companies Eligible for Settlement Benefits?

Your auction eligibility depends on MLS listing status. If your property was listed on an MLS during the eligibility period, you’ll meet settlement criteria even if sold through auction channels.