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The real estate industry is undergoing a major shift. In March 2024, the National Association of Realtors (NAR) reached a landmark $418 million settlement in response to a series of lawsuits challenging long-standing commission structures. As part of the settlement, NAR agreed to change how commissions are handled—bringing transparency, flexibility, and negotiation back into the hands of both buyers and sellers.
This change marks a turning point in how residential real estate deals are structured and opens the door for homebuyers to consider alternatives to the traditional real estate agent model—especially the value of hiring a real estate attorney. Keep reading for more information from Schneiders & Associates on how we can help you after the settlement.
Key Takeaways from the NAR Settlement
- Buyers must now sign written agreements with their real estate agents before touring homes.
- Commission offers can no longer be listed on the MLS (Multiple Listing Service), making fee negotiations more transparent.
- Buyers are no longer limited to agents whose commissions are paid by the seller. They now have the option to negotiate their own representation and fees.
This new structure removes the assumption that sellers will cover the buyer’s agent commission. As a result, buyers must decide whether to pay a real estate agent directly or explore other forms of representation—such as hiring a real estate attorney.
Why Buyers Should Consider Hiring an Attorney
Legal Experience and Contract Protection
Real estate attorneys bring something that real estate agents cannot: legal training. While agents help find homes and navigate market conditions, attorneys have specific knowledge of contracts, risk mitigation, and legal obligations. From drafting or reviewing purchase agreements to identifying potential liabilities, attorneys ensure every legal detail is covered.
They can:
- Review and explain contracts
- Negotiate terms with sellers
- Spot red flags in disclosures or inspection reports
- Assist in title and deed review
- Advise on zoning, land use, or tax issues
This type of representation helps protect buyers’ interests throughout the transaction—and long after the deal closes.
More Transparent and Often Lower Fees
Traditionally, a buyer’s agent would receive a 2.5–3% commission paid by the seller. On a $1 million home, that’s $25,000–$30,000 in fees—built into the sale price and passed onto the buyer indirectly.
By contrast, a real estate attorney may charge a flat fee or hourly rate—often far less than a full commission. For buyers who have already found a home on their own or don’t need full-service representation, hiring a lawyer can be a smarter financial decision.
Strategic Negotiation Advantage
In a competitive market, making a strong offer matters. Buyers who don’t bring a traditional agent into the transaction may choose to:
- Waive the buyer’s agent commission entirely
- Propose covering their own legal fees
- Request that sellers pay only the listing agent’s commission
This approach can make an offer more attractive to sellers and potentially give buyers an edge—without sacrificing protection or guidance, especially if a qualified attorney is involved.
Long-Term Peace of Mind
Mistakes in a real estate deal can cost thousands—or lead to legal disputes. Having a lawyer on your side from the beginning offers peace of mind that your interests are protected and that your transaction complies with local and state laws.
Attorneys ensure due diligence is completed thoroughly, disclosures are properly handled, and you understand exactly what you’re signing. This reduces the risk of future headaches and costly litigation.
Final Thoughts
The NAR settlement has reshaped the real estate landscape, giving buyers more control over how they approach a home purchase. With commission structures no longer set in stone, you’re no longer limited to traditional representation. This shift offers a unique opportunity to rethink how you protect your interests during what is likely one of the biggest financial decisions of your life.
Working with a real estate attorney allows you to move forward with clarity, confidence, and strong legal support. At Schneiders & Associates, LLP, in California, we’re here to help you navigate every step of your real estate transaction with precision and care. If you’re buying a home and want to explore your options, contact us today to learn how we can represent your interests and safeguard your investment.