Real estate agents across America have been warned about defying a landmark $418million settlement that is meant to revolutionize the housing market and save buyers thousands of dollars.

The bombshell settlement agreement with the National Association of Realtors (NAR) signed in March was heralded as the most significant shift to the property industry in a century.

But insiders have revealed to the New York Times that some agents are now creating covert signals to maintain their lucrative commission structures.

From August 17, realtors will be banned from discussing how they split commissions on multiple listing services (MLS) – the databases where homes are listed for sale.

Before that date, an agent working on behalf of a seller would charge their client a fee of around 5 to 6 percent – which was then split with the buyer’s agent.

But some agents are resisting the changes with some even devising secret codes to communicate commission offers.

Some propose placing exactly three cookies on kitchen counters in listing photos to signal a 3 percent commission offer.

Others suggest displaying movie titles like ‘The Three Amigos’ on living room TVs in photographs.

The real estate industry was hit by its biggest shakeup in a century in August 2024, when the agent commission system was overturned after a series of lawsuits against major brokerages

The bombshell settlement agreement with the National Association of Realtors (NAR) signed in March was heralded as the most significant shift to the property industry in a century

Many plan to simply pick up the phone for off-the-record commission talks.

‘The interpretations have gone wild, Ryan Tucholski, chief executive of the West Volusia Association of Realtors in Central Florida, told the New York Times.

Despite warnings from Michael Ketchmark, the lead lawyer who won the massive settlement against NAR, that further legal action would follow any attempts to circumvent the rules, the real estate industry appears determined to resist change.

‘Anyone who thinks they can continue to fix commissions on new websites or side deals is foolish and wrong,’ Ketchmark warned.

‘We will take legal action to enforce the settlement agreement. It’s time to let the free market finally work.’

Meanwhile, the Department of Justice has reopened its investigation into the trade group’s antitrust activities.

The NAR itself appears to be encouraging its 1.5million members to maintain the status quo by simply moving compensation discussions elsewhere.

NAR president Kevin Sears told members in an official video message: ‘If there’s one thing I know about members, they will figure out how to efficiently communicate the information to see if there will be any cooperating compensation.’

The organization’s chief legal officer, Katie Johnson, doubled down in a July 31 email, stating: ‘Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals.’

These practices hurt ordinary homeowners, according to research. 

Research from the University of Southern California School of Law examined hundreds of thousands of home listings across 34 major markets and found properties offering lower buyer agent commissions languished on the market longer and attracted fewer potential buyers.

Experts say the settlement is really about changes to the rules which are designed to make real estate brokerages more competitive

NAR president Kevin Sears told members in an official video message: ‘If there’s one thing I know about members, they will figure out how to efficiently communicate the information to see if there will be any cooperating compensation’

This might mean agents could steer clients away from homes where they wouldn’t earn substantial commissions. 

This in turn would punish sellers who try to save money.

‘Until at least the end of the year, we’re going to have chaos,’ Rob Hahn, a real estate strategist who writes the industry newsletter NotoriousROB, told the outlet.

‘And a lot of agents aren’t going to be able to deal with the changes. We’re going to see a lot of them choose to leave the industry.’

The $418million settlement involving the NAR and HomeServices is one of five main settlements covering various brokerages that make up $1billion in total, according to the official settlement website.