The National Association of Realtors (NAR) has announced that rule changes to Realtor-affiliated Multiple Listing Service (MLS) are to be implemented by August 17.

These rule changes are a part of a $418 million settlement, the final hearing of which is slated for November.

The NAR also updated its extensive FAQ page, in order to clarify policy changes that will come about due to the settlement. For instance, MLSs will no longer have fields for listing agents to offer or specify compensation to buyers’ agents.

Listing agents and sellers would still be able to offer compensation to buyers’ agents, but not with the MLS system; those would have to be separate negotiations.

In addition, the NAR does not impose a particular model of compensation for buyers’ agents, beyond that agreements must be “objectively ascertainable,” and compliant with all relevant state laws. This means that a buyer and their agent could decide whether the agent will be paid a lump sum, a percentage, or even on an hourly basis.

Brokerages and MLSs will need to ensure that they are compliant with these rules by August 17. For a more comprehensive listing of changes, the NAR maintains an extensive FAQ site with more details.

Here in the Huntsville/Madison County market, the real estate market continues to show high activity. According to a report from the Huntsville Area Association of Realtors (HAAR), new listings of single-family homes picked up by 20% in the week ending April 20th, while townhouse/condo units saw a 27.8% increase that same week.

Inventory continued to come online, with a 32.6% increase in single-family homes and a 114.5% increase in townhouse units. However, actual pending sales were sluggish, with a mere 5% increase in single-family homes sold, and townhouse units actually seeing a 41.7% decrease in pending sales.

As always, the Huntsville Business Journal will continue to monitor the real estate market and report on developments as they occur.