The California Association of Realtors (CAR) placed an open letter in nearly 40 California newspapers Thursday from President Melanie Barker to “mitigate confusion” about a recent legal settlement. 

In March, the National Association of Realtors (NAR) announced an agreement to end litigation regarding home sellers’ claims on broker commissions. Under the terms of the agreement, NAR would pay $418 million over approximately four years to resolve the claims against the group.

The proposed agreement to end the litigation will change how brokers are paid. The letter said properties listed in databases known as the multiple listing service (MLS) will no longer be allowed to include an offer of compensation to buyer’s agents. 

The letter was posted by multiple publications including the Fresno Bee, as well as other California outlets including the Los Angeles Times, San Francisco Chronicle, Mercury News, Sacramento Bee, San Diego Union-Tribune, Orange County Register, Press-Telegram, Desert Sun, Record Searchlight.

It was also picked up by the California editions of The Wall Street Journal and The New York Times.

In addition, homebuyers who want to work with an agent will need to sign a written agreement with that agent before touring a home. Before a home search can begin, agreements need to be discussed with the agent on what they will do on behalf of the homebuyer and to decide how much and how to pay that agent.

“How consumers work with agents in this new environment will need to work itself out, and there will be differing approaches between agents and their clients,” Barker said in the letter. “Many in the industry, and we at the CALIFORNIA ASSOCIATION OF REALTORS®, are currently working on sorting through and articulating those new practices as quickly as possible.”

The letter reassures future clients of CAR’s transparency regarding how buyer’s agents are compensated—something that has been going on for more than two decades since CAR introduced its first buyer representation agreement in 1999. 

“We’re California REALTORS®, and we know a thing or two about real estate. In fact, it’s precisely because of our knowledge about the complexities of what is arguably the most important purchase people make in their lives that we want to say this first: It’ll be okay,” the letter said. “Yes, some real estate practices will change as a result of these settlements, but California REALTORS® know how to adapt to changing market realities. We always have. And, while we understand that uncertainty can be deeply unsettling, especially when there are few answers and many opinions, we know we’ll figure it out together, as an industry and with our clients.”

The letter explained the reality of what makes real estate transactions complicated. Agents have to have the ability to be well-versed in myriad financial and legal requirements to guide homebuyers through a complex process. Agents negotiate on their buyers’ behalf to get the right home at the right price and help sellers determine the best listing price based on market and neighborhood fundamentals. Barker said in the letter that agents also guide their clients through the complexity of home inspections and innumerable other details.

“We come to this job because we love putting people in homes. We stay in this job because we love working with our clients, who become our friends and neighbors. As we’ve done for decades, through up markets and down markets, through periods of industry change, we will stand by our clients, serve our communities, and continue to do what we do best — work to create a future that enables homeownership for all who want it,” said Barker.