DOJ Raises Concerns Over NAR Settlement and Buyer Agent Agreements Explore the DOJ’s concerns over the NAR settlement, its potential impact on buyer-agent agreements, and what it means for the future of real estate practices. The U.S. Department of Justice (DOJ) recently weighed in on the $418 million settlement proposed by the National Association of Realtors (NAR) to resolve antitrust lawsuits in the Sitzer/Burnett case. While the settlement aims to address allegations of inflated real estate commissions and restrictive practices, the DOJ has expressed concerns about its broader implications, particularly regarding buyer agent agreements and antitrust enforcement. This article explores the DOJ's position, the implications of the settlement, and what it means for the real estate industry moving forward. DOJ’s Key Concerns 1. Antitrust Enforcement... Read more
Category: Realtor Commission Lawsuit
What the NAR Settlement Means for Home Sellers
What the NAR Settlement Means for Home Sellers: Key Insights NAR Settlement for Home Sellers: Selling a home involves many decisions, and having the right guidance is essential. Agents who are REALTORS® are trusted professionals who can help you navigate the complexities of the selling process. The recent settlement by the National Association of REALTORS® (NAR) has introduced several changes related to broker commissions that are important for sellers to understand. Here’s a clear breakdown of what these changes mean for you as a home seller. 1. Key Changes for Home Sellers The NAR settlement has resulted in specific updates that impact how sellers interact with buyer brokers and manage commissions. Here’s what you need to know: Offering Compensation to Buyer Brokers: As a seller,... Read more
real estate commission lawsuit – real estate commission changes
real estate commission lawsuit - real estate commission changes The landscape of real estate commissions is undergoing a significant transformation in 2024, primarily due to a series of lawsuits and settlements involving the National Association of Realtors (NAR). These changes, set to take effect in mid-August 2024, will alter how real estate agents are compensated, impacting both buyers and sellers in the housing market. Key Changes in Real Estate Commissions: Elimination of MLS Compensation Offers: One of the most notable changes is the prohibition of offers of compensation through Multiple Listing Services (MLS). Previously, it was common for sellers to offer a commission to buyer’s agents as part of the MLS listing. This practice is now being eliminated, requiring buyer agents to negotiate their compensation... Read more
Real Estate Commission Changes
Real Estate Commission Changes...Things to Consider I want to start off by saying the world needs real estate agents. There is no doubt about it. If you disagree you may not understand what a real estate agent really does. At least good ones. But like any industry we have bad agents. They may not be worth what they have been paid in the past. That is not all of us tho. With the new big news in the real estate world that EVERYONE is talking about: The National Association of Realtors (NAR) has reached a settlement in a lawsuit that could shake up how real estate agents get paid. If you're buying or selling a home, this is something you'll want to pay attention to.... Read more
DOJ Rejects Commission Settlement and Screws Over Realtors and Their Commission
DOJ Rejects Settlement and Screws Over Realtors and Their Commission When the government gets involved with things they don't understand we are the ones that get hurt. In a landscape where the traditional structures of the real estate industry are being rigorously questioned, a pivotal development has emerged from the U.S. Department of Justice (DOJ). This development centers on the longstanding practice of fixed and shared commissions between real estate agents, a practice that has been a cornerstone of the industry's operation. The DOJ's rejection of a court settlement marks a turning point, emphasizing a clear message: the necessity of reforming how agent commissions are determined and distributed. The DOJ's Standpoint on Agent Commissions The Department of Justice has cast a critical eye on the... Read more
A Turning Point for the U.S. Real Estate Industry: The $1.78 Billion Verdict and Its Far-Reaching Consequences
The Sitzer | Burnett Commission Trial U.S. Real Estate Industry: The $1.78 Billion Verdict and Its Far-Reaching Consequences In a groundbreaking legal decision, a federal jury in Kansas City, Missouri, has held the National Association of Realtors (NAR) and several key residential brokerages, including Berkshire Hathaway affiliates, accountable for artificially inflating commissions on home sales. The jury's award of $1.78 billion in damages could escalate to over $5.3 billion under U.S. antitrust laws, marking a potential sea change in the real estate sector. The Backdrop of the Case The lawsuit was a class action initiated by sellers of over 260,000 homes in Missouri, Kansas, and Illinois between 2015 and 2022. These sellers challenged the commissions they were required to pay to buyers' brokers. The two-week... Read more
The Sitzer | Burnett Realtor Commission Trial: A Watershed Moment for the Real Estate Industry
The Sitzer | Burnett Commission Trial: A Watershed Moment for the Real Estate Industry The Sitzer | Burnett commission trial currently underway in Kansas City, Missouri, is more than just another legal proceeding. It's a pivotal moment that could redefine the landscape of the real estate industry, particularly in how agents are compensated. With over two decades of experience in real estate, I offer the following in-depth analysis of the trial's implications. Industry Implications The trial's elevation to a U.S. District Court is not to be taken lightly. It underscores the gravity of the allegations at hand, which could potentially revolutionize the way real estate agents are paid. If the court rules in favor of the plaintiffs, we could see a seismic shift in commission... Read more
RE/MAX Settles in Dual Class-Action Lawsuits Concerning Commission Fees
The recent settlements involving RE/MAX and Anywhere Real Estate in the twin class-action lawsuits concerning real estate commission fees have stirred conversations within the industry. These cases, known as the Sitzer/Burnett and Moehrl lawsuits, have put the spotlight on how commissions are structured and shared among brokers and agents. RE/MAX and Anywhere Real Estate Settlements RE/MAX agreed to a $55 million settlement, following Anywhere Real Estate's $83.5 million settlement two weeks prior. Both companies have opted for settlements to eliminate legal uncertainties, even though they have refuted the allegations against them. Pending court approval, RE/MAX and Anywhere Real Estate have also committed to revising their business practices. NAR's Stance on MLS Broker Platforms The National Association of REALTORS® (NAR), another key party in these lawsuits,... Read more