T
he National Association of Realtors (NAR) settlement is on track for approval despite a last-minute filing from the Department of Justice (DOJ). The DOJ expressed concerns that mandatory agreements between buyers and agents could harm competition. Industry experts are advising agents to stick with the proposed settlement rules, even if it means avoiding potential workarounds.

    The key component of the $418 million NAR settlement is the removal of offers of compensation from multiple listing services and the requirement for buyer agent agreements to be signed before touring properties. However, the DOJ's filing suggests that this rule may harm buyers by limiting competition. The agency suggested scrapping the rule altogether or modifying it.

    Despite the DOJ's concerns, U.S. District Court Judge Stephen Bough is expected to approve the final settlement without significant changes on November 26. However, the DOJ has requested that Bough make clear that the settlement is not a shield from further litigation, which could put agents and brokerages in a difficult position.

    Industry leaders are advising agents to follow the rules of the proposed settlement to avoid future lawsuits. James Dwiggins, CEO of NextHome, suggests continuing to follow the agreement once it has been finalized and paying attention to the plaintiffs' interpretation of it. He believes that attempting to work around the policy changes could lead to costly defense costs.

    Monestier notes that agents may try to get more than what's laid out in the agreement or look for other workarounds, such as renegotiating higher commission amounts or taking bonuses above what's in their written agreement with buyers. Dwiggins warns against these practices, saying they can be incentivized to steer clients towards certain properties.

    The industry is facing uncertainty due to the DOJ's filing and the potential for lawsuits if agents and brokerages continue to employ workarounds. Monestier believes that this will come as a big surprise to the industry, and Dwiggins suggests that companies should focus on following the rules rather than trying to find loopholes.