You may have seen headlines about a big lawsuit that changed how real estate commissions work. In August 2026, a federal appeals court affirmed the settlement in that case, known as Sitzer-Burnett, which quietly reshaped how homes are bought and sold across the country starting in 2024. Let me cut through the noise and tell you, in plain English, what actually changed under the new real estate commission rules and what it means when you buy or sell here in Central Texas.
Key Takeaways
The industry changes that took effect in August 2024 are here to stay. Two things matter most to you. Buyers now sign a written agreement with their agent before touring homes, and the buyer’s agent commission is no longer posted on the MLS, it is negotiated. Here in Texas, we have used written buyer representation agreements for years, so this was less of a shock than it was in some markets. And nothing about it changes my actual job, which is to represent you honestly and get you the best outcome.
What is the Sitzer-Burnett case?
Sitzer-Burnett was an antitrust class action filed against the National Association of Realtors and several large brokerages. At the heart of it was how buyer-agent commissions were set and shared. In 2024, NAR agreed to a settlement that included a $418 million payment over four years and, more important for you, a set of practice changes in how agents and MLS systems handle commissions. Those changes took effect on August 17, 2024, and they are still in effect today.
If you want the official version, the National Association of Realtors keeps a plain-language rundown of what the settlement means for buyers and sellers.
What just happened?
Appeals are a normal part of any large settlement, and this one drew several. In August 2026, the Eighth Circuit Court of Appeals affirmed the lower court’s approval of the settlement, resolving seven consolidated appeals at once. In plain terms, the court said the settlement stands. The plaintiffs could still ask the Supreme Court to take up the case, but for now this brings a long chapter of litigation close to an end and keeps the practice changes firmly in place. That certainty is a good thing, because it means the rules you buy and sell under are settled.
What actually changed for you?
Two practice changes matter to you as a consumer.
First, if you are working with an agent as a buyer, you sign a written buyer agreement before you tour homes. It spells out what the agent will do for you and how they will be paid. This protects you by putting the relationship and cost in writing up front, before you become emotionally attached to a house.
Second, the buyer’s agent commission is no longer advertised on the MLS. It used to be that a seller offered a set buyer-agent commission that showed on the listing. Now that number is not posted. It is negotiated, and it can be part of the offer conversation. Sellers can still choose to offer a buyer-agent commission or a concession, but it is now a choice, not an assumption.
If you are buying
Here is what to expect. Early on, we sit down and put our agreement in writing, so you know exactly what I do for you and how it works. When we find a home, the question of who pays your agent, and how much, becomes part of the strategy. Sometimes the seller offers to cover it, sometimes we ask for it as a concession, and sometimes we structure it another way. The point is that it is negotiable, and having someone who negotiates for a living in your corner matters more now, not less. Since you now choose and commit to an agent before you ever tour a home, it pays to be choosy. If you want a head start, here is my guide on how to choose the right realtor in Central Texas.
If you are selling
As a seller, you now decide whether to offer anything toward a buyer’s agent, and how much. It is no longer automatic, and it is not posted on the MLS. This is a real strategy conversation, because what you offer can affect how many buyers your home attracts and how your net proceeds shake out. I walk you through the options with the data, the same way I handle pricing, so you make the call that serves you.
It matters even more in a market like this one, where buyers have more leverage than they have had in years. If you want the lay of the land before you list, here is my breakdown of what today’s buyer’s market means in Central Texas.
My honest take
I think transparency is a good thing. Putting the buyer relationship and the cost in writing, and negotiating commissions openly instead of by default, is healthier for buyers and sellers both. And here in Texas, we have used written buyer representation agreements for years, so a lot of this felt familiar to those of us who were already doing it the right way. What has not changed is the most important part. My job is to represent you honestly, explain your options, and get you the best result. That was true before the lawsuit, and it is true today.
A few questions I am hearing
Do I have to sign something before you show me houses? Yes. Buyers now sign a written buyer agreement before touring. It is a good thing, because it puts our relationship and the cost in writing before you fall for a home.
Who pays my agent when I buy? It is negotiated. The seller may offer to cover it, we may ask for it as a concession, or we structure it another way. We work that out as part of your offer strategy.
As a seller, do I still have to pay the buyer’s agent? No, it is not automatic anymore. You decide whether to offer anything and how much. It is a strategy call, and I help you make it with the numbers in front of you.
Is this all final now? The settlement has been affirmed on appeal and the practice changes are firmly in effect. The plaintiffs could still ask the Supreme Court to hear it, but the rules you buy and sell under today are settled.
The Bottom Line
The commission lawsuit made real changes, and the courts have now affirmed them. The headlines can make it sound scary, but for you it comes down to two things: sign your buyer agreement up front, and treat commissions as something to negotiate rather than assume. Neither one changes what a good agent is for. If you are thinking about buying or selling in Central Texas and want a straight, plain-English walk-through of how this affects you, reach out. Donna and I are happy to talk it through.
This article is general information, not legal advice. I am a REALTOR, not an attorney. For guidance on your specific situation, please consult a qualified professional.
Written by Richard Fowler, REALTOR with the ARK Property Team at Pure Realty. Published August 2026.
