When Lawsuits Force Us to Grow Up: How Sitzer/Burnett Is Rewriting Real Estate Practice
By John Mijac, Managing Broker, 1912 Realty
For most of my career, “commission” was the quiet hum in the background of our work—negotiated case by case, rarely discussed publicly, and almost never front-page news. Then came Sitzer/Burnett, a lawsuit that exploded into the headlines, changing not just the conversation about compensation but the very framework of real estate practice.
“If that’s the outcome, the lawsuits didn’t punish us—they propelled us forward.”
The Shock That Changed the Industry
When a Missouri jury awarded $1.8 billion against NAR and several major brokerages in 2023, accusing them of conspiring to keep commissions artificially high, it was a gut punch to professionals across the country. The verdict—and the later $418 million NAR settlement—wasn’t just about money. It was about redefining how REALTORS® explain their value and how consumers understand representation.
Other brokerages quickly followed with settlements of their own. Appeals are ongoing, but the practice changes are already here.
What REALTORS® Must Understand
- No more mandatory cooperative compensation in MLS. Even if the requirement was “just a dollar,” the courts viewed it as anti-competitive. Today, seller-offered compensation is optional, not required.
- Written buyer-broker agreements are now mandatory before showings. This reform brings clarity: buyers know who represents them, what services they receive, and how compensation is handled. Agents gain professional security and client commitment.
These are not technical tweaks—they are cultural shifts. They demand that every REALTOR® sharpen their communication and articulate their value with precision.
Why These Changes Matter
For years, many agents relied on “how it’s always been done” to justify commission structures. But the lawsuits exposed blind spots. They forced us to ask hard questions:
- Are we clearly communicating the value we bring?
- Are we transparent about how and why we get paid?
- Are we leaning too heavily on brokerage brands instead of our individual expertise?
The answers have already changed the way we work. Buyers now ask better questions. Sellers better understand their options. REALTORS® who thrive will be those who provide measurable service, clear advocacy, and visible expertise.
The Long-Term Impact
In practice, commissions have not collapsed. In some markets, buyer-agent comp has held steady or even increased as agents prove their worth. Sellers have not seen the financial windfalls they expected. Instead, the reforms clarified the rules of engagement and placed professionalism at the center of the conversation.
Transparency builds trust. And trust is what smooths transactions, prevents disputes, and cements our value in the eyes of consumers.
The Road Ahead
The legal battles are far from over. Appeals continue. The Department of Justice is circling. Portals, referral networks, and large brokerage models remain under scrutiny. The spotlight will not fade anytime soon.
But that spotlight can be healthy. It keeps us accountable. It reminds us that real estate is more than a business—it’s a calling. We guide people through the biggest decisions of their lives. That work deserves trust, and trust thrives only in transparency.
Final Thought
The lawsuits may have begun with misunderstanding, but they’ve given us an opportunity to evolve. Change is uncomfortable, yes—but necessary. In hindsight, this may be remembered as the era REALTORS® shed outdated habits and embraced modern professionalism.
If that’s the outcome, the lawsuits didn’t punish us—they propelled us. And that’s progress worth standing behind.