Jul 13

Sitzer-Burnett Settlement Appeal Heads to Federal Court—What REALTORS® Need to Know

The legal battle over the landmark Sitzer-Burnett settlement continues this week as the U.S. Court of Appeals for the Eighth Circuit hears arguments from parties challenging the court-approved agreement.

While the appeal has drawn significant attention across the real estate industry, one thing remains unchanged: the settlement’s practice changes—including the requirement for written buyer agreements and the prohibition of offers of compensation on the MLS—remain fully in effect nationwide.

Why the Appeal Matters

Objectors to the settlement are asking the appellate court to reverse the district court’s approval of the agreement. Their arguments include questions about legal standing, the fairness of the settlement distribution, and whether the settlement should include certain homebuyers.

The National Association of REALTORS® (NAR) and the other parties supporting the settlement maintain that the agreement was properly approved and provides meaningful relief while bringing greater transparency and consumer choice to residential real estate transactions.

A Quick Refresher

The Sitzer-Burnett lawsuit, originally filed in 2019, alleged that certain real estate industry practices related to cooperative compensation violated federal antitrust laws. After a jury verdict in favor of the plaintiffs in 2023, NAR and several industry participants reached a nationwide settlement in March 2024.

The agreement included more than $1 billion in relief for eligible home sellers and introduced significant policy changes that reshaped how buyer representation and broker compensation are handled across the industry.

Business as Usual for REALTORS®

Although the appeal is moving forward, REALTORS®, brokers, and MLSs should continue operating under the current rules. The legal challenge does not pause or reverse the settlement’s practice changes, which remain enforceable while the appellate court reviews the case.

For real estate professionals, the focus remains on maintaining compliance with current NAR policies, using written buyer representation agreements, and following MLS rules regarding compensation.

What’s Next?

Following oral arguments, the appellate court will review the case before issuing a decision. That process could take several months. Until then, the settlement remains in place, and the industry’s updated business practices continue to govern residential transactions across the country.

Real estate professionals should continue monitoring official NAR communications for updates as the appeal progresses and any future court decisions are announced.

Source: REALTOR® Magazine
“Oral Arguments in Sitzer-Burnett Settlement Appeal Begin Wednesday”
National Association of REALTORS®

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