The National Association of Realtors recently agreed to settle a big lawsuit that questions how real estate agents are paid — and who foots the bill.

Between the lines: The proposed settlement could shake up the traditional 6% commission structure, which is usually split 50-50 between buyer and seller agents, Crain's reports.

The big picture: If approved, come summer, agents won't be able to make offers of compensation in the Multiple Listing Service, the database where real estate agents post homes for sale.

Why it matters: The seemingly small change, which a court preliminarily approved last week, is causing major confusion.

How it works: Currently, sellers and their broker negotiate a fee for representation, and that broker decides how much profit they want to share with the buyers' agent for helping close the deal.

• That number is advertised in the MLS listing, and the seller pays both agents from the home sale earnings.
• Many are concerned this causes buyers' agents to steer clients toward homes that offer them higher commission.

If the settlement is approved, offers of compensation will not be listed in the MLS. Buyers and their broker will negotiate how much the broker should earn — and how they'll get paid, antitrust lawyer Brian Schneider says.

• Increased transparency around agent profits could lead to more competition as buyers become more savvy about negotiating brokers' fees.

What they're saying: Detroit realtor Matt O'Laughlin tells Axios that brokers who mostly represent buyers will have to work harder to convince potential clients that their services are worth paying for.

• "I think you'll see a lot of the buyer brokers go away, is my assumption," he says.

Yes, but: Buyers' agents aren't going to work for free.

• Sellers will likely offer concessions to cover buyer agent costs, Faron King, a vice president with NAR, tells Axios.

What's next: "[Real estate] is in the greatest state of disruption I've seen in the last decade-plus," Zillow exec and Tomo co-founder Greg Schwartz says.

• He expects minimal innovation short term but radical change over the next five to seven years.

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The median wage for Michigan real estate sales agents was $55,940 in 2023.

The big picture: Most observers believe commissions will fall, possibly to 1%-1.5% per agent on each side, Axios' Emily Peck reports.

🎩 Watch for a Detroit edition of Monopoly coming out later this year. The company is currently seeking suggestions. (Free Press)

🏗️ A controversial Grosse Pointe Park performing arts center project is getting complaints from the Archdiocese of Detroit over oil-like liquid allegedly leaking into a church near the construction site. (Detroit News)

📹 A video posted to social media showed the upper balcony of the Fox Theatre bouncing up and down during a recent concert with rapper Gunna.

• The movement, while slightly unnerving to look at, is "common and expected" on such balconies, per venue operator Ilitch Sports and Entertainment. (WDIV)

WeWork's leases at two Detroit offices will remain intact as the company struck a deal last month to exit bankruptcy.

Why it matters: The coworking space operator filed for Chapter 11 bankruptcy protection in November, leaving its leases in Detroit and elsewhere in limbo.

Driving the news: WeWork will remain open at 19 Clifford St. and 1001 Woodward Ave., the company announced.

• Existing lease agreements with Bedrock will be maintained. WeWork's footprint in other markets could be shrinking as part of its restructuring.

Flashback: WeWork closed a third Detroit location in the TechTown area at 6001 Cass Ave. in 2022.

Between the lines: WeWork reached a $450 million restructuring deal to exit bankruptcy by the end of May.

• Company co-founder and former CEO Adam Neumann is not involved, despite having wanted to buy back his former company.
• Yardi Systems, a property management software provider and WeWork service partner, would become the company's new majority owner with around a 60% stake.

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The Midtown spot where Vigilante Kitchen recently closed is now home to a nonprofit-run restaurant, Epiphany Nain Rouge Kitchen.

• The nonprofit, Soil2Service, runs a culinary education program called the Detroit Institute of Gastronomy that offers hybrid, online and in-field apprenticeship programs.

The latest: Epiphany opened in late April and is adding brunch service starting with Mother's Day, serving what it describes as redefined "American comfort food," per a news release.

• Its first apprenticeship students are starting this week.