Powerful Realtors Group Agrees to Abolish 6 Percent Commissions After Steep Settlement

A long-running lawsuit, with stakes as high as $5 billion, finally reaches a resolution, which the association describes as a victory on many levels

A National Association of Realtors (NAR) report shows homeowners are happier and healthier than non-owners. Justin Sullivan/Getty Images

The drawn-out legal battle over the high commissions that realtors have charged for their work in closing sales finally came to a head on March 15, as the National Association of Realtors (NAR) reached a $418 million settlement with sellers.

The association will pay the amount due over four years. Terms of the settlement also include abolishing the practice, which has been common going all the way back to the 1940s, of charging 5–6 percent commissions.