R
eal estate agents across the US have been warned not to defy a landmark $418 million settlement aimed at revolutionizing the housing market and saving buyers thousands of dollars. The agreement, signed in March with the National Association of Realtors (NAR), was hailed as the most significant shift in the property industry in a century. However, insiders claim some agents are using covert signals to maintain their lucrative commission structures.

    Starting August 17, realtors will be banned from discussing how they split commissions on multiple listing services (MLS). Before this date, an agent working for a seller would charge around 5-6% of the sale price, which was then split with the buyer's agent. To circumvent these changes, some agents are devising secret codes to communicate commission offers. For example, placing three cookies in listing photos or displaying specific movie titles may signal a lower commission rate.

    The real estate industry has been shaken by its biggest shakeup in over a century since August 2024, when the agent commission system was overturned following lawsuits against major brokerages. Despite warnings from lead lawyer Michael Ketchmark that further legal action would follow attempts to circumvent the rules, the industry appears determined to resist change.

    The Department of Justice has reopened its investigation into the NAR's antitrust activities, and the organization itself seems to be encouraging members to maintain the status quo by moving compensation discussions elsewhere. Research from the University of Southern California School of Law found that properties offering lower buyer agent commissions languished on the market longer and attracted fewer potential buyers.

    Experts say the settlement is about changing rules to make real estate brokerages more competitive, but this might lead agents to steer clients away from homes where they wouldn't earn substantial commissions. This would punish sellers who try to save money. Industry strategist Rob Hahn predicts "chaos" until at least the end of the year, with many agents choosing to leave the industry due to the changes. The $418 million settlement is part of a total $1 billion in settlements involving various brokerages and the NAR.