NAR settles commission lawsuits; hangs buyer agents out to dry
The National Association of REALTORs sent out an e-mail to all its members at 10:30 this morning to let them know they’ve reached a settlement in the commission-fixing lawsuits nationwide.
Why it matters: It will change the way REALTORs, especially those who work with buyers, have gotten paid for over 50 years.
MLS participants working with buyers will be required to enter into written representation agreements with their buyers starting in July.
NAR will pay $418 million over four years to the plaintiffs.
A new rule, also effective in July, will prohibit offers of compensation on the MLS, meaning there will be no entries regarding what a buyer’s agent (cooperating agent) would receive if they procure a buyer in a transaction.
What they’re saying: The New York Times has outlined at least four ways this could change the industry.
Our thought bubble: It’s been estimated in the past that such a result could lead to up to 1 million REALTORs leaving the profession. Also, a federal report released yesterday found that this result could have devastating effects on consumers and the housing market as a whole.
July, typically the hottest month for real estate transactions in the U.S. could be unusually slow this year once the changes go into effect.
Local traditions will create a hodgepodge of customs across the country so that buyers and sellers will no longer have a common way of buying and selling homes.
Go deeper: NAR
We hope you found this helpful — any feedback is appreciated and can be shared by hitting reply or using the feedback feature below.
Was this email forwarded to you? Subscribe here.
Have an idea or issue to share? Email us.
Connect with us using your preferred social media and website links for MyLandTrustee and Aspire Legal Solutions.
Our mailing address: PO Box 547945, Orlando, FL 32854-7945
Our physical address: 1901 West Colonial Drive, First Floor, Orlando, FL 32804
Be on the lookout for our next issue!
