NAR Settlement Rules in 2026: What Tennessee Real Estate Agents Need to Know

Originally published August 2024. Updated September 2026.

The NAR settlement practice changes that took effect in August 2024 are no longer upcoming. They are now part of the operating rules that many real estate professionals and MLS users work under every day. The settlement received final court approval on November 26, 2024, and in August 2026 the Eighth Circuit upheld that approval. For Tennessee agents using Realtracs, the practical focus is on the current written-agreement, compensation-disclosure, and MLS rules that affect day-to-day business.

1. Written Buyer Agreements Before Touring

Realtracs' current rules require Participants working with a buyer to enter into a written agreement with the buyer before touring a home. The agreement must clearly state the buyer broker's compensation or how it will be determined, make that amount objectively ascertainable rather than open-ended, state that broker fees and commissions are fully negotiable, and prohibit the broker from receiving more compensation than the amount or rate agreed to with the buyer.

Tennessee REALTORS also notes that the required written agreement does not necessarily have to create an agency relationship. Agents should use the current forms and procedures approved by their brokerage and follow broker guidance. Review Tennessee REALTORS' current Legal Hotline guidance.

2. Broker Compensation Stays Off Realtracs

Realtracs' rules, last revised July 28, 2026, prohibit Participants and Users from submitting broker compensation amounts to Realtracs, including the amount paid to the listing broker, total seller-paid broker fees, or amounts offered to a cooperating or buyer broker. Compensation may still be negotiated outside the MLS, subject to applicable law, brokerage policy, and the parties' agreements. Review the current Realtracs rules and documentation.

3. Compensation Disclosures and Seller Authorization

Realtracs requires Participants and Users to disclose to prospective sellers and buyers that broker compensation is not set by law and is fully negotiable. When a listing Participant or seller will make a payment or offer of payment to a broker, agent, or other representative acting for the buyer, the seller's written authorization must identify the amount or rate and be obtained before the payment or agreement to pay.

4. Realtracs Prohibits Compensation-Based Filtering

Current Realtracs rules also state that Participants and Users may not filter or restrict listing information communicated to a client based on the amount a seller or seller's broker may pay a buyer broker. Listing information and showings must be handled in the client's best interest regardless of those financial arrangements.

Where a Transaction Coordinator Fits

A transaction coordinator can support the administrative side of these requirements, but the TC does not determine legal or MLS compliance, negotiate compensation, select contract strategy, interpret contract terms, or replace the licensed agent or broker. SmoothTC can help organize signed documents, track signatures and dates, flag missing administrative items for agent or broker review, route agent-directed documents for signature and distribution, and maintain transaction records and communication under the agent's direction.

The licensed agent and broker remain responsible for deciding which agreements and forms are required, interpreting MLS and brokerage rules, negotiating compensation, reviewing documents, and making compliance decisions. See SmoothTC's transaction coordination services and pricing or read our Transaction Coordinator FAQ for more about how our administrative support works.

The Bottom Line for Tennessee Agents in 2026

The 2024 practice changes are now established operating requirements rather than a one-time transition. For Tennessee agents using Realtracs, the focus should be on current written buyer agreements, compensation disclosures, keeping compensation out of the MLS, documenting seller authorization when required, and maintaining an organized transaction file.

SmoothTC can support the administrative workflow while the agent stays responsible for client representation, negotiation, strategy, contract interpretation, and licensed decisions.

This article is for general educational purposes only and is not legal advice. Real estate professionals should follow current NAR, Realtracs, Tennessee REALTORS, TREC, brokerage, and legal guidance applicable to their transactions.