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The National Association of Realtors is finally coming unraveled.

In a breaking news report, NAR who previously pledged to defend and appeal a $5 billion verdict

has agreed to pay $418 million in damages to settle the commission lawsuits.

Now the result is as many as one million agents could exit real estate.

Now, if you haven't been following NAR's legal battles and the ongoing fight over commission reform,

I'm going to break it down for you as well as how this landmark settlement will forever change the way real estate agency works in America.

As one of the largest and most powerful trade groups in America, NAR has been able to hang on to an antiquated commission structure for decades longer than it should have despite major advancements in technology.

And finally, NAR can no longer protect its agents from inevitable reform. After numerous debilitating lawsuits, coupled with their president resigning and sexual harassment and other scandals, NAR has finally lost its grip.

Many brokerages and agents are disassociated from NAR, and there are even new trade group surfacing that are promising to provide better support to the million plus real estate agents nationwide.

So let me give a little context to what's happened. The current commission structure in America

set and maintained by NAR violates antitrust laws in two primary ways. The first issue is with

NAR's cooperative compensation rule, also known as the buyer broker commission rule. This is where the

seller is required to set the commission for the buyer site agent in order to submit a listing

to the NAR-affiliated multiple listing service or MLS. In other words, if you want to list a property

for sale on the MLS, you have to put how much the buyer's agent is getting paid. And remember,

the seller pays the buyer's commission, not the buyer, which brings up the second issue. Not only

does the buyer not decide how much his agent gets paid, the selling agent and buyer's agents

conspire to fix the buyer commissions exceptionally high at two and a half to three percent.

And this is where a lot of agents get up in arms and completely missed the point. The argument

isn't that a buyer's agent's value isn't worth a 3% commission. The argument is that the

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