The legal fight that reshaped residential real estate has cleared another major hurdle.
On August 19, 2026, a three judge panel of the United States Court of Appeals for the Eighth Circuit affirmed the nationwide Sitzer Burnett settlement. The ruling rejected multiple challenges to the district court’s approval of the agreement and left the settlement intact.
The immediate answer for buyers, sellers, agents, brokerages, and multiple listing services is simple: nothing new changes.
The practice rules implemented in 2024 remain in effect. Written buyer agreements are still required before an agent tours a home with a buyer. Offers of buyer broker compensation still cannot appear on an MLS. Compensation remains negotiable.
The ruling does not reverse the industry changes. It gives them stronger legal footing.
How the Sitzer Burnett Case Reached This Point
The case began in 2019 when a group of Missouri home sellers filed an antitrust class action against the National Association of Realtors and several major real estate companies.
The plaintiffs alleged that commission rules limited competition by requiring listing brokers to offer compensation to buyer brokers through the MLS. A jury ruled for the plaintiffs in 2023.
NAR later agreed to pay $418 million and implement two central practice changes. The district court granted final approval in November 2024. Several objectors appealed.
The Eighth Circuit rejected those challenges and affirmed the district court’s approval.
What the Appeals Court Actually Decided
The appellate court was not asked to create a new commission system. It was asked whether the district court properly approved the settlement under federal law.
The Eighth Circuit rejected the objectors’ arguments and allowed the settlement terms, financial payments, releases, and practice changes to remain in place.
NAR described the ruling as a decision that provides greater certainty for the industry. That is the practical takeaway.
The Two Practice Changes Remain in Effect
Agents who work with buyers must continue using written buyer agreements before touring a home. The agreement should address the services the agent will provide and how the agent may be compensated.
Offers of buyer broker compensation also remain prohibited from display on an MLS.
That does not mean a seller is prohibited from offering compensation to a buyer’s agent. A seller may still choose to make an offer outside the MLS after discussing the strategy with the listing agent. Any compensation remains negotiable and must be handled in accordance with the settlement rules and applicable law.
The settlement changed where compensation offers can be communicated. It did not establish a standard commission or eliminate the ability to negotiate how an agent is paid.
What the Ruling Means for Buyers
Buyers should expect a compensation conversation before touring homes. That conversation should cover the agent’s services, the agreed compensation, and the possible sources of payment.
Buyers should ask what services are included, when compensation is earned, whether the agreement is exclusive, and how it can be modified or terminated.
The ruling does not make buyer representation free. It makes the compensation structure more explicit.
What the Ruling Means for Sellers
Sellers retain the ability to decide whether offering buyer broker compensation supports their sale strategy. That decision should reflect the property, target buyer, market conditions, pricing, and the seller’s broader negotiation strategy.
What remains clear is that compensation cannot be advertised through the MLS and the seller must approve any payment or offer made on the seller’s behalf.
What the Ruling Means for Agents and Brokerages
For real estate professionals, the ruling creates certainty without creating a new compliance checklist. Buyer agreements must be completed at the correct stage. Compensation conversations must be clear. Seller approvals must be documented. MLS listings must comply with the current rules.
Clear terms build trust. Vague terms create problems.
Is the Litigation Over?
The Eighth Circuit’s decision is a major step toward finality, but further review remains possible.
The appellants may ask the full appellate court to reconsider the case or petition the United States Supreme Court for review. Neither step guarantees that another court will hear the dispute.
Unless a later court changes the outcome, the settlement remains approved and the practice changes remain in full effect.
Buyers, sellers, and real estate professionals should continue operating under the current rules.
The Bottom Line
The Sitzer Burnett settlement survived appeal.
The ruling does not create a new set of real estate practices. It confirms the structure that has governed the industry since 2024.
Written buyer agreements remain required before touring. Offers of buyer broker compensation remain prohibited on the MLS. Compensation remains negotiable. Sellers retain choice. Buyers should expect transparency before the search begins.
The legal uncertainty has narrowed. The responsibility to communicate clearly has not.
About the Lundgren Team
The Lundgren Team at SERHANT., led by Nile Lundgren, specializes in luxury and new development sales across New York City, South Florida, and Connecticut. The team has represented buyers, sellers, and developers in hundreds of transactions totaling more than $500 million in sales.
Thinking about buying, selling, investing, or making a smarter real estate move? Contact Nile Lundgren and the Lundgren Team to start the conversation.
This article is general market commentary and is not legal advice. Buyers, sellers, and real estate professionals should consult qualified counsel regarding their specific agreements and obligations.
