Monday News you Can Use - 03.18.2024
Mar 18, 2024BIG NEWS
NAR settles commissions lawsuit?
Looks like we’re on our way.
I don’t agree we’ll settle at 4.2% commission (30% off the 6% that they claim is standard). It will require Buyers Representation forms to be completed. The settlement looks like it calls for ANY compensation fields to be removed - so we’ll have to negotiate any payment as part of the contract.What do you think?
Fellow members, The Sitzer-Burnett verdict and the copycat cases filed across the country have raised questions about the way real estate professionals do their jobs and how consumers can hire and compensate us. Since the litigation began, we have worked consistently to reach a resolution with the plaintiffs. In the months since the Sitzer-Burnett verdict, we redoubled those efforts. We have always wanted to reduce the significant strain on our members and provide a path forward for the industry. That’s why today we announced a proposed settlement agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions. The settlement is subject to court approval. The agreement would resolve claims against NAR, over one million NAR members, all state/territorial and local REALTOR® associations, all association-owned Multiple Listing Services (MLSs), and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below. Throughout the settlement process, we engaged with a diverse range of members and considered their perspectives and interests while fighting to protect all industry players as best we could. From the beginning of this litigation, we had two goals:
I encourage you to watch this video from NAR Chief Legal Officer and Member Experience Officer Katie Johnson and me. Additionally, there are materials available for members about today’s announcement at facts.realtor. You will need your NAR login credentials to access these materials. We will also continue to update competition.realtor with the latest information. We know from our association’s 116-year history that REALTORS® are adaptable, and I’m confident that this agreement provides a path for us to move forward and continue our work to preserve, protect, and advance the right to real property for all. Thank you for your continued dedication to consumers and to protecting property rights in America. Regards, Kevin |
Settlement FactsheetNAR and plaintiffs have reached a proposed settlement agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions. The agreement would resolve claims against NAR, over one million NAR members, all state/territorial and local REALTOR® associations, all association-owned Multiple Listing Services (MLSs), and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below. The settlement is subject to court approval. Ultimately, we believe this was the best outcome we could achieve in the circumstances. The large settlements that other corporate defendants have already reached were important factors going into what NAR could achieve in this settlement. Coverage of NAR’s ReleaseImplications for Members
Implications for Brokerages Owned by Members
Implications for NAR and other REALTOR® Associations
Implications for Association-Owned MLS's
Implications for Other MLS's
Practice ChangesWe were able to retain the right of consumers to continue to have cooperative compensation as an option so long as they pursue it off-MLS through negotiation and consultation with real estate professionals. NAR has agreed to put in place a new rule prohibiting offers of compensation on the MLS. The change will go into effect in mid-July 2024. Implications for members
o Fixed-fee commission paid directly by consumers o Concession from the seller o Portion of the listing broker’s compensation
Implications for home buyers and sellers
New rule about written agreements
Implications for members and home buyers and sellers
Other cases concerning the MLS cooperative compensation Model Rule
Next steps in settlement processCourt approval and opt outs
NAR operations
Why settling now makes senseNAR explored settling throughout the litigation and also carefully considered the other legal options available to us. These included:
Ultimately, while NAR continues to believe that it is not liable for the home seller claims related to broker commissions and that we have strong arguments challenging the Sitzer-Burnett verdict, we decided to reach this settlement to put claims to rest for over one million NAR members and other parties who would be released under the agreement. What’s next
|
_________________________________
Your Coaching Matters Supports Agents and Brokers to |
|