The 2024 NAR Settlement -- What Changed for LA and OC Buyers

What the NAR Settlement Was -- and Why It Happened

The National Association of Realtors settled a landmark antitrust lawsuit in March 2024 for $418 million. The underlying cases -- Sitzer/Burnett and others -- alleged that NAR’s commission rules artificially inflated buyer agent compensation by requiring sellers to offer buyer agent fees on the MLS as a condition of listing. The plaintiffs argued this eliminated competition on buyer agent compensation and effectively forced sellers to pay buyer agents whether they wanted to or not.

The settlement required two fundamental changes: NAR would eliminate the rule requiring MLS-listed sellers to offer buyer agent compensation, and buyers would need a written agreement with their agent before any showings. These changes took effect nationally on August 17, 2024. California implemented its version through updates to the CAR standard forms, creating the Buyer Representation and Broker Compensation (BRBC) agreement.

Nearly two years later in 2026, the California real estate market has largely absorbed these changes -- but many buyers still don’t fully understand what happened, what changed, and -- most importantly -- how to use the new structure to their financial advantage.

The Three Things That Actually Changed in California

Change 1 -- The BRBC Replaced the Informal Handshake

Before August 2024, many California buyers worked with agents on an informal basis -- viewing homes without any written agreement, sometimes with multiple agents, with compensation terms never explicitly discussed until deep into a transaction. The BRBC ended this.

Now, before any agent can show you a California property, you must sign a BRBC that states: who represents you, what the agent’s maximum compensation is (in dollars or percentage), and for how long. This requirement cannot be waived. The BRBC creates clarity that benefits buyers -- you know exactly what your agent earns before you start working together.

For buyers working with Roman, the BRBC states $7,250 or $9,250 as maximum compensation. This is disclosed upfront, before the first showing, with no ambiguity.

Change 2 -- Seller Compensation Became Negotiable, Not Assumed

Before the settlement, sellers listing on the MLS were required to offer buyer agent compensation -- and that offer was visible on the MLS to all agents. The amount ranged from 2% to 3% in most California markets. Sellers had little leverage to reduce this because not offering compensation meant their listing would not appear in searches filtered by buyer agents for their clients.

After the settlement, sellers can choose whether to offer buyer agent compensation and how much. In practice, most LA and OC sellers still offer 2% to 2.5% because doing so attracts more buyers. But the offer is now made as part of the transaction negotiation rather than as an MLS listing requirement -- and it is negotiated as a seller concession in the purchase offer rather than flowing automatically through the MLS commission structure.

Change 3 -- Compensation Became Transparent and Visible

The new structure forces transparency. Buyers know their agent’s compensation before the first showing. Sellers know exactly what buyer agent compensation they are being asked to pay as part of any offer. The opaque commission system that characterized California real estate for decades is replaced by explicit disclosure at every stage.

What Did Not Change

Despite media coverage suggesting the settlement would dramatically reduce agent compensation or fundamentally restructure real estate markets, several things remained largely the same in Los Angeles and Orange County.

Sellers are still offering buyer agent compensation. Survey data and transaction records from 2025 and early 2026 show that the majority of California sellers continue to offer buyer agent compensation -- typically 2% to 2.5%. The economics are straightforward: sellers who refuse to offer compensation attract fewer buyers, which typically means lower final sale prices. The market is self-correcting.

The standard California RPA is still the primary transaction document. The purchase contract, contingency structure, and closing process in California remain largely unchanged. The BRBC is an addition, not a replacement for existing transaction documents.

Full-service buyer representation is still available. The settlement eliminated a compensation rule -- not full-service buyer representation. Buyers working with experienced agents continue to receive the same scope of service: market analysis, offer strategy, inspection management, and closing oversight.

How the Settlement Created the Optimal Flat Fee Structure

Before August 2024, returning excess commission to buyers was structurally more complex. MLS rules in some markets restricted how agents could advertise rebates. The transaction mechanics were less clean. The pre-settlement structure created friction for flat fee models even where they were legally permitted.

The post-settlement structure is cleaner than anything that existed before. The BRBC states the flat fee upfront. The purchase offer requests a seller concession equal to the seller-offered compensation -- with the flat fee deducted. The excess becomes a closing cost credit on the ALTA settlement statement. Every document supports every other document in a coherent, legally clean chain.

For California buyers in Los Angeles and Orange County, this means:

At $1.2M with 2.5% seller compensation ($30,000): BRBC states $7,250. Offer requests $30,000 seller concession applied to buyer agent compensation, with $22,750 credited back to buyer at closing. Every dollar is disclosed, documented, and legally clean.

At $1.5M with 2.5% seller compensation ($37,500): BRBC states $9,250. Offer requests $37,500 seller concession, with $28,250 credited back to buyer at closing.

The settlement did not create the flat fee model -- it created the cleanest possible implementation of it.

What This Means for LA and OC Buyers in Specific Markets

The practical impact of the settlement varies somewhat by market segment in Los Angeles and Orange County.

Sub-$1M markets (Valley, Inland LA, parts of OC)

In more affordable segments, sellers are more likely to offer buyer agent compensation because the buyer pool is larger and more price-sensitive. Flat fee credits in this range ($10,000-$17,750) are meaningful but buyers are also more likely to be using every dollar for down payment -- making the credit particularly valuable for preserving liquidity.

$1M-$2M markets (Pasadena, Glendale, Irvine, Culver City, South Bay)

The sweet spot for the flat fee model in terms of absolute credit size and seller cooperation. Sellers in this range are typically offering 2% to 2.5% buyer agent compensation and are financially sophisticated enough to understand and accept a well-structured offer with a seller concession. Credits in this range run $12,750 to $40,750. Pasadena guide → Irvine guide →

$2M+ markets (Westside, Newport Beach, Malibu, Beverly Hills)

Luxury sellers are highly sophisticated and typically have legal and financial advisors involved in transaction decisions. Seller concession requests are common and expected in this segment. Credits at this level ($40,750 to $65,750+) are large enough to meaningfully affect financial position at closing. Beverly Hills guide → Newport Beach guide →

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