The long-running Sitzer-Burnett real estate commission case has reached another major milestone. On August 19, 2026, a three-judge panel of the U.S. Court of Appeals for the Eighth Circuit upheld the settlement, rejecting challenges to the agreement’s approval.
For consumers, the most important takeaway is straightforward: the real estate practice changes that took effect in 2024 remain in place.
That includes written buyer agreements and changes to how offers of compensation are communicated through multiple listing services. So, what does the latest ruling actually mean if you’re buying or selling a home?
What Was the Sitzer-Burnett Case About?
Sitzer-Burnett was a class-action antitrust case involving real estate commissions and practices surrounding offers of compensation.
The case went to trial in October 2023, where a Missouri jury found for the home-seller plaintiffs and awarded nearly $1.8 billion in damages. NAR and several brokerage defendants subsequently reached settlements with the plaintiffs.
NAR’s settlement, reached in 2024, included an agreement to pay $418 million over four years and implement changes to real estate practices.
The settlement received final approval from the federal district court in November 2024, but several parties challenged that approval in the Eighth Circuit.
On August 19, the appeals court rejected those challenges and allowed the settlement to remain in place.
The ruling provides additional certainty around the settlement after years of litigation and appeals.
What Does the Ruling Mean for Home Buyers?
For buyers, the biggest practical change remains the requirement for a written agreement with a buyer’s agent before the agent can provide services.
The settlement required NAR members to use written buyer-broker agreements. These agreements help establish the relationship between the buyer and agent and explain important terms, including the services the agent will provide and how the agent will be compensated.
This means buyers should expect to have a conversation about representation and compensation before or as they begin working with an agent, rather than treating those details as something to figure out after finding a home.
That’s actually an important opportunity for consumers.
Ask questions. Read the agreement. Understand what services you’re receiving and how compensation works before you commit.
The specific terms of an agreement can vary, so buyers should review their individual agreement carefully and ask their real estate professional to explain anything they don’t understand.
How Does the Settlement Affect Agent Compensation?
The settlement prohibits offers of cooperative compensation from being communicated through REALTOR® multiple listing services, but it does not eliminate the ability for a buyer’s agent to receive compensation.
Instead, compensation arrangements are discussed and negotiated outside the MLS, subject to applicable laws and individual agreements.
This distinction is important because one common misconception is that the settlement simply eliminated buyer-agent compensation.
It did not.
Rather, the process became more transparent around how compensation is discussed and documented.
For buyers, that means compensation should be part of the conversation when establishing your relationship with your agent.
For sellers, it means you should understand what services you’re paying for, what your listing agreement provides, and what options may be available when structuring your transaction.
The goal is greater clarity so consumers can make informed decisions.
What Does the Appeals Court Decision Change Going Forward?
The August 19 ruling does not create a new set of consumer-facing rules; it confirms that the settlement approved by the lower court remains intact.
The appeals court rejected arguments from multiple objectors, including challenges involving the adequacy of the settlement, the distribution of settlement funds, the inclusion of homebuyers, and the legal standing of the plaintiffs.
The court also rejected arguments concerning the release of certain brokerage franchisees and the procedures used during the settlement approval process.
For consumers, that means the changes already implemented in 2024 continue to govern transactions involving NAR members covered by the settlement.
The biggest takeaway isn’t that something new suddenly changed. It’s that the existing framework now has greater legal certainty after the appeals court upheld the settlement.
What Should Buyers and Sellers Do Now?
If you’re buying a home, don’t be afraid to ask your agent direct questions about representation, services and compensation.
Before signing a buyer agreement, consider asking:
- What services are included?
- How long does the agreement last?
- How is the agent compensated?
- What happens if the seller offers compensation?
- Are there circumstances where I could owe additional compensation?
- What are my options if my needs change?
If you’re selling, ask similar questions about your listing agreement and marketing strategy.
Real estate compensation is not something consumers should feel uncomfortable discussing. It’s an important part of understanding the transaction.
The market has evolved, and informed consumers are in a stronger position when they understand the agreements they sign.
What This Means for Your Next Real Estate Move
The Sitzer-Burnett settlement is now on firmer legal ground after the Eighth Circuit upheld it, but the most important thing for consumers is understanding how the rules affect their individual transaction. Buyers and sellers have more reason than ever to ask questions, review agreements carefully, and understand how representation and compensation work. Knowledge gives you more confidence when making one of the biggest financial decisions of your life.
Ready to Make Your Next Move?
Whether you’re buying or selling, Contact Roylin Downs and The RoylinSells Group to discuss your goals, questions, and options in today’s changing real estate environment.
Frequently Asked Questions
What is the Sitzer-Burnett settlement?
The Sitzer-Burnett settlement resolved claims arising from a class-action antitrust lawsuit involving NAR and real estate commission practices. NAR agreed to pay $418 million over four years and implement significant practice changes, including written buyer agreements and restrictions on communicating offers of cooperative compensation through REALTOR® MLSs.
Did the appeals court overturn the NAR settlement?
No, the Eighth Circuit upheld the settlement on August 19, 2026. The three-judge panel rejected the arguments raised by multiple objectors and allowed the settlement approved by the lower court to remain in place.
Do buyers still need a written agreement with their agent?
Yes, the settlement-related practice changes requiring written buyer agreements remain in effect. Buyers should review the agreement carefully and make sure they understand the services, duration and compensation terms before signing.
Did the settlement eliminate buyer-agent compensation?
No, it changed how offers of compensation can be communicated through REALTOR® MLSs and reinforced the importance of discussing compensation directly with consumers. Buyers and agents can still negotiate compensation arrangements, subject to applicable laws and the terms of their agreement.
What should I ask a real estate agent about compensation?
Ask exactly how the agent will be compensated, what services are included, and whether you could have any additional financial responsibility under the agreement. Understanding those details before you begin seriously shopping or selling can help prevent surprises later.
Sources
- National Association of REALTORS®, Appeals Court Rules With NAR, Sitzer-Burnett Settlement Remains Intact
- National Association of REALTORS®, Oral Arguments in Sitzer-Burnett Settlement Appeal
- Real Estate News, Appeals Court Upholds Settlements in Sitzer/Burnett
- National Association of REALTORS®, NAR Settlement FAQs
This article is for general educational purposes and is not legal advice. Real estate laws, agency requirements and compensation practices can vary by state and transaction. Consumers should review their individual agreements and consult qualified legal professionals when appropriate.
