NAR Settlement Compliance

Background

In March 2024, the National Association of Realtors (NAR) reached a settlement that introduced new requirements for real estate agents who are MLS participants. Two requirements are most relevant to how Factour operates: first, agents must enter into a written buyer representation agreement with a buyer before touring a home; second, compensation must be clearly specified upfront, with buyers acknowledging that commissions are negotiable and not set by any third party.

How Factour satisfies the written agreement requirement

On Factour, every paid tour booking creates a written agreement between the consumer and the agent before the tour takes place. The agreement is formed through the platform's acceptance and confirmation workflow:

1. The consumer posts a tour request for a specific property.
2. A licensed agent submits a proposal stating their exact fee and availability.
3. The consumer accepts the proposal. At this point, a written agreement is formed between those two parties through the platform, stating the agent's exact fee, the total the consumer will be charged, and the scope of the engagement.
4. The agent confirms the property is available at the accepted time. The tour is confirmed.

This process satisfies the written agreement requirement because: (1) it is written, transmitted through the platform and confirmed by both parties; (2) it is formed before the tour; (3) it specifies compensation exactly; and (4) it is scoped to a single property and a single appointment, which the NAR settlement expressly permits.

Compensation transparency

Factour's compensation model is transparent at every step:

• Agents set their own fee per tour. No agent is required to charge any particular amount.
• The consumer sees each agent's fee before accepting any proposal.
• The platform fee (10% of the agent's fee) is added to the consumer's total and is visible before acceptance.
• No fee is left open-ended, subject to a percentage of purchase price, or settled at closing.
• Consumers choose freely among competing proposals. No agent is given priority placement.

Scope limitations

The agreement formed through Factour is intentionally narrow. It covers one tour of one property at one appointment. It does not create:

• An ongoing buyer representation relationship.
• Any obligation by either party to engage for future tours, offers, or transactions.
• Any commission arrangement tied to the purchase price of the property.
• Any exclusivity that would prevent the consumer from booking tours with other agents.

The settlement expressly permits written agreements scoped to a single property or a single day. Factour's tour-by-tour model aligns directly with this flexible, limited-scope structure.

Owner-hosted showings

Owner-hosted showings on Factour do not involve a licensed agent and therefore fall outside the NAR settlement's scope entirely. No buyer representation agreement is required, no agent compensation is involved, and no MLS participation rules apply. These showings are a direct arrangement between a property owner and a prospective buyer, facilitated through Factour's scheduling platform.

Important limitations and disclaimer

This page describes how Factour is designed and how we interpret applicable requirements. It is not legal advice. Real estate law and the application of the NAR settlement vary by state, by MLS membership status, and by the specific facts of each transaction. Agents should verify their compliance obligations with their broker, their state real estate commission, and a licensed attorney in their state.

Factour is not a party to any agreement between a consumer and an agent formed through the platform. Factour does not provide brokerage services, does not represent buyers or sellers, and is not responsible for the content of any representation agreement entered into between a consumer and an agent.