Real Estate Law · August 19, 2026 · 7 min read

NAR Settlement Upheld—What Maryland Buyers & Sellers Face Now

The Appeals Court Said Yes—Now What?

Two weeks ago, the Eighth Circuit Court of Appeals upheld the NAR commission lawsuit settlement, affirming the November 2024 final approval. Parties have until September 2, 2026, to seek a rehearing, but barring that, the rules that went into effect last year are here to stay.

If you bought or sold a home in Maryland, DC, Pennsylvania, or Delaware after August 2025, you've already lived this. But I still get questions every week—at open houses in Harford County, over coffee in Bel Air, during listing appointments in Baltimore City—about what actually changed and whether it matters.

So let's talk about it. Not in legalese, but the way I'd explain it if we were sitting at your kitchen table with a contract in front of us.

What the Settlement Actually Changed

The National Association of REALTORS® agreed to two big rule changes that affect how we work:

First: No more blanket offers of buyer-agent compensation in the MLS. Before August 2025, listing agents routinely advertised in the Multiple Listing Service what they'd pay a buyer's agent—usually a percentage of the sale price. That's gone. Sellers can still choose to pay a buyer's agent, but we can't advertise it in the MLS the way we used to.

Second: Buyers must sign a written representation agreement before a REALTOR® shows them a home. This was the bigger shift for my day-to-day work. In the old days, I could meet a buyer at an open house, they'd like what they saw, and we'd go look at three more houses that afternoon. Now, we sit down first and put our working relationship in writing.

The agreement spells out what I'll do for you, how long we'll work together, and—this is the part people get hung up on—how I'll be paid.

Why This Matters for Maryland Buyers

Let's say you're looking at homes for sale in Cecil County or Anne Arundel. You call me. We chat. You want to see a house this weekend.

Before we go, we'll sign a buyer representation agreement. It doesn't lock you into buying. It doesn't mean you owe me money out of pocket (most of the time). But it does mean we both understand the deal.

Here's what I put in mine:

The agreement makes sure no one is surprised. I've been a teacher for over twenty years before I got my license, so I'd rather over-explain than leave someone confused.

And yes, sellers can still offer to pay the buyer's agent. Many do. But now it's negotiated case-by-case, not posted like a price tag in the MLS.

What Sellers in DC, PA, and Delaware Need to Know

If you're selling a home in Prince George's County, York County, or New Castle County, here's your new reality: you and your listing agent will decide together whether to offer compensation to a buyer's agent, and if so, how much.

Some sellers worry this will scare off buyers. I'll be honest—it can, if you're not strategic. A buyer who has to pay their agent out of pocket (or negotiate it into the deal) might look at your house differently than one where the seller covers it.

But here's the thing: the best buyers—the ones with solid pre-approvals, the ones who've done their homework—aren't scared off by this. They've already had the conversation with their agent. They know what to expect.

What I recommend to my sellers in Harford County and Baltimore County: offer compensation if you can. Build it into your net proceeds. Make your home easier to show, easier to buy. You're competing for serious buyers in a market where inventory is creeping up and 42% of listings have cut their prices.

The Part No One Talks About: Transparency Is Uncomfortable

I'll say this as someone who spent two decades in leadership and education before real estate: transparency is uncomfortable until it isn't.

The old system let everyone pretend commissions were "free" because they were baked into the sale price and nobody talked about them. Buyers didn't see a line item. Sellers didn't negotiate them much. The MLS quietly moved money around.

Now? It's on the table. Buyers know what their agent costs. Sellers decide what they'll contribute. And frankly, that's healthier. It just takes some getting used to.

I've had buyers look at the representation agreement and pause. "Wait, you want how much?" And I explain: that's what I've always made. The difference is now you see it, and you get to decide if the work I do is worth it.

Most of the time, they sign. Because they've seen me respond to their texts at 9 p.m., pull comps on a Sunday, and talk them off the ledge when an inspection report comes back scary.

What You Should Actually Do

If you're buying a home in Maryland, DC, Pennsylvania, or Delaware right now, here's my advice:

  1. Interview agents before you sign anything. The representation agreement matters now. Make sure you're hiring someone who'll earn it.
  2. Ask how they get paid. A good agent will explain it clearly. If someone dodges the question, walk.
  3. Understand that "seller pays" is still common. Don't panic. In most deals I've closed since August 2025, the seller covered my fee. But have a Plan B.
  4. Read the agreement. All of it. I'll explain every line, but you're signing it, so you should know what's in there.

If you're selling:

  1. Talk to your listing agent about buyer-agent compensation early. Don't wait until you're under contract and a buyer asks for a credit because their agent isn't covered.
  2. Factor it into your pricing strategy. If you're offering 2.5% to a buyer's agent, know what that costs you and price accordingly.
  3. Be ready to negotiate. Some buyers will ask you to cover their agent. Some won't. Flexibility helps.

And whether you're buying or selling: ask questions. The rules changed, but your REALTOR®'s job is still to guide you through it.

The Legal Disclaimer You Knew Was Coming

This is general information, not legal advice—for your specific situation, please consult a licensed real estate attorney.

The NAR settlement is national, but how it plays out depends on your local market, your contract, and your transaction. Maryland, DC, Pennsylvania, and Delaware each have their own disclosure requirements and agency laws on top of this. If you're unsure whether a representation agreement is fair, or whether a seller's obligation is clear, talk to a real estate attorney before you sign.

Why I'm Not Worried

Here's the truth: good agents were already doing this work. We were already explaining our value, negotiating our fees, and putting relationships first.

The settlement just made it official.

I've closed deals in Cecil County, Montgomery County, and Baltimore City since the rules changed, and the sky hasn't fallen. Buyers and sellers still need help. They still want someone who knows the market, knows the process, and will pick up the phone when the appraisal comes in low or the title company finds a lien.

The current mortgage rate is 6.67% as of last week, and inventory is still tight in most of the markets I serve. The fundamentals haven't changed. The paperwork just got more honest.

If you're ready to buy or sell and want someone who'll walk you through the new rules without the jargon, let's talk. I've been doing this since before the settlement, and I'll be doing it long after.

And if you're just starting to look and want to see what's out there, check out my current listings—no representation agreement required to browse.

Katrina Kirton Sherrod, REALTOR® · Samson Properties · Licensed in MD, DC, PA & DE · 443-616-9770 · Katrina@kkstherealtor.com

“Real estate cannot be lost or stolen, nor can it be carried away. It is about the safest investment in the world.” — Franklin D. Roosevelt (paraphrased)