Understanding Class Notice Before August 17
Update from Katie Johnson, NAR Chief Legal Officer and Chief Member Experience Officer
There are just five days left before the implementation of NAR’s practice changes on August 17. Today, we also want to make you aware of “class notice,” which could come as early as August 17, and how real estate professionals should answer questions from consumers should they arise.
Class notice is a court-approved process through which members of the “Settlement Class”—home sellers who sold a home during the eligible date ranges, the home was sold on an MLS anywhere in the U.S., and paid a commission to a real estate brokerage in connection with the sale of the home—will be informed about NAR’s proposed settlement of the Sitzer-Burnett case. Notices will be distributed by mail and electronically. Class notice informs class members of their rights, options, and deadlines to exercise those rights and options under the proposed settlement. Watch NAR’s video on what class notice means for REALTORS® here.
Consumers in your area may have already received a notice regarding separate settlements made by certain brokerage firms; however, this notice will be new and address NAR’s settlement.
It is important to underscore that NAR does not manage the class notice process. NAR members may nonetheless receive questions from consumers. NAR members should direct consumers to the settlement website (www.RealEstateCommissionLitigation.com) where they can find relevant information. You may also direct them to call the settlement administrator at 888-995-0207, for additional guidance. NAR members should refrain from further advising consumers on class notice.
We’d like to take a moment in the final days prior to August 17 to thank all NAR members as well as association and MLS staff who have been working tirelessly to prepare for and/or implement the practice changes across their organizations and businesses. We’d also like to thank all who have played an instrumental role in providing feedback, asking questions, and staying engaged in our settlement and practice change educational campaign.
Lastly, we leave you with several notes and updates:
- The practice changes are detailed here and clarifying information is available in our FAQ on facts.realtor.
- To obtain a release of liability under the settlement, you must be a REALTOR® on the date of class notice.
- We’ve made updates to our FAQ, including a new section on transaction brokerage (#80-86).
- We will host a webinar on August 15 from 3-4PM CT on the practice changes. Access it here.
- Throughout 2024, NAR is making the popular Accredited Buyer’s Representative (ABR®) designation course available to REALTORS® at no cost: abr.realtor.
Thank you, and please feel free to reach out with any questions.
