Sep 15

Sitzer-Burnett: The Real Estate Shake-Up Buyers and Sellers Should Know About in 2026

Real estate has always come with plenty of paperwork, negotiations and questions. But in recent years, one lawsuit has added a whole new chapter to the conversation: Sitzer-Burnett.

So, what does this legal saga have to do with your next home purchase or sale? Quite a bit.

The lawsuit challenged long-standing practices surrounding real estate commissions and offers of compensation to buyer brokers. In 2024, the National Association of REALTORS® agreed to a $418 million settlement and changes that reshaped how compensation and buyer representation are handled.

Translation: The Rules Changed

One of the biggest changes is that buyers working with REALTORS® generally must have a written agreement with their agent before touring homes. That agreement spells out what the agent will do and how the agent will be compensated.

And here’s another important twist: offers of compensation to buyer brokers can no longer be displayed on MLSs covered by the settlement.

But that doesn’t mean compensation disappeared.

Sellers can still choose to offer compensation to a buyer’s agent, and buyers and sellers can negotiate how those costs are handled. The difference is that the conversation is happening more directly and transparently.

Fast-Forward to 2026

The courtroom drama isn’t entirely finished. In August 2026, the U.S. Court of Appeals for the Eighth Circuit upheld the settlement after objections from some class members. That decision gives the industry additional clarity as real estate professionals and consumers continue adapting to the post-settlement landscape.

For buyers and sellers, the biggest takeaway isn’t a complicated legal term. It’s ask questions.

Before signing an agreement, understand exactly what your agent is providing, what you’ll pay, and what options may be available. Don’t be afraid to talk about compensation—it’s a normal part of today’s real estate conversation.

The Sitzer-Burnett case may have started in a courtroom, but its impact is being felt at kitchen tables, open houses and closing tables across the country.

In 2026, knowing the rules can help you negotiate smarter—and that’s something every buyer and seller can appreciate.

Source: REALTOR® Magazine
“Breaking Down Sitzer-Burnett”
National Association of REALTORS®

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