Realogy is publicly calling for an end to the requirement that listing-brokers offer buyer-brokers’ commissions in order to submit listings to Realtor-affiliated MLSs.

An Upending in How Buyer’s Agents Traditionally Compensated?

For the first time ever, Realogy publicly called for the National Association of REALTORS (NAR) to abolish its prerequisite that listing brokers offer commissions to buyer brokers as a requirement to submit listings to Realtor- affiliated multiple listing services (MLSs).

Ryan Gorman, president and CEO of Realogy Brokerage Group and CEO of Coldwell Banker, wrote in his firm’s court filing. “It is the position of Realogy that the mandatory nature of the NAR Cooperative Compensation Rule should be rescinded.”

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This position from Realogy was added to ongoing but not yet settled multiple antitrust lawsuits filled by home sellers and a homebuyer who want homebuyers to pay their buyer agent/broker.  (The current industry standard requires listing brokers to pay buyer brokers from the sales commission a seller pays the listing broker.)

Central to these multiple antitrust lawsuits is NAR’s Participation Rule, also called the Buyer Broker Commission Rule or the NAR Cooperative Compensation Rule. All of these one-in-the-same names require listing brokers to offer commissions to buyer brokers to participate in Realtor- affiliated multiple listing services (MLSs).

Gorman Clarity in Folllow-up Inman Phone Interview

Apparently, according to an Inman phone interview with Gorman after the Realogy filing was made public, Gorman supports buyers’ agents being compensated for bringing a buyer to the table to transact a sale.  However, Gorman objects to the NAR rule that mandates commissions from listing agents to buyers’ agents in order for a home to be listed in the MLS.

Gorman said in the Inman phone interview, “There’s really no reason why an offer of compensation needs to be a mandatory requirement for a home to be listed in the MLSs.  So it’s really just the mandatory component for listing a home in the MLS that we’re saying is unnecessary.”


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To emphasize his position to the Inman interviewer, Gorman said, “I don’t believe that MLSs should make it a requirement.

On the other hand, Gorman also said that the only set of NAR rules/guidelines it requires Realogy owned brokerages and franchisees to honor is NAR’s Code of Ethics.  

By the way, Realogy does not require its firm/franchisees to join Realtor associations.

Thanks to Inman.


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