This is the actual letter statement sent out to all Colorado real estate agents Director’s Corner Commission Settlements and Colorado Licensees The Division has received a lot of inquiries about the proposed settlementagreement between the National Association of Realtors (“NAR”) and plaintiffsRhonda Burnett, Jerod Breit, Jeremy Keel, Hollee Ellis, Francis Harvey, ChristopherMoehrl, Michael Cole, Steve Darnell, Jack Ramey, Daniel Umpa, Jane Ruh, DonGibson, Lauren Criss, and John Meiners, and the impacts that the proposed agreementwill have on broker compensation in Colorado. If you have not read the proposedagreement or are unfamiliar with the proposed terms, you can review a copy here. As an initial matter, it is important to note that the settlement terms are onlyapplicable to members of NAR and the Realtor MLSs. Colorado... Read more
Tag: NAR Commission Lawsuit
NAR National Association of Realtors (NAR) has proposed a substantial settlement
National Association of Realtors (NAR) has proposed a substantial settlement The National Association of Realtors (NAR) has proposed a substantial settlement in response to lawsuits regarding broker commissions. This proposal is a notable event within the real estate industry, marking a shift in how transactions and compensations are handled. Here's an overview of the settlement and its implications: NAR Settlement Amount: The National Association of Realtors (NAR) agreed to pay $418 million to settle lawsuits related to broker commissions. Payment Schedule: The settlement will be paid in installments over four years, with significant portions due at various intervals after court approval. Offers of Compensation: The agreement mandates the elimination of compensation offers through the MLS, a significant change in how buyer agents are compensated. Buyer... Read more
N.A.R.’s Landmark Commission Settlement
N.A.R.'s Landmark Commission Settlement In an unprecedented move, the National Association of Realtors (N.A.R.) has agreed to a monumental $418 million settlement in response to a series of lawsuits. This decision not only aims to compensate for past grievances but also marks a pivotal shift in the housing market by modifying commission structures. Below, we delve into the details of this settlement and its potential implications for the real estate industry. The Settlement at a Glance Settlement Amount: N.A.R. agrees to a $418 million compensation package. Impact on Commission Rules: Key rules regarding commissions are to be abolished, promising to lower the cost of selling homes. Consumer Choice and Member Protection: According to Nykia Wright, interim chief executive of N.A.R., the settlement is designed to... Read more
NAR Misses the Mark Again Possibly Destroying Real Estate as We Know It
NAR Commission Lawsuit The recent lawsuit against the National Association of Realtors (NAR) and several leading U.S. real estate brokerages has sent shockwaves through the industry, with a Kansas City jury awarding $1.8 billion in damages for alleged antitrust violations. This case, along with similar actions, could significantly impact the real estate commission structure and the industry at large. Here are ten key points on how this lawsuit could affect the real estate landscape: Antitrust Allegations Against NAR: The lawsuit centers on allegations that NAR and major brokerages colluded to artificially inflate agent commissions through rules that require sellers to pay the buyer's agent commission, potentially violating federal antitrust laws. Impact on Commission Structures: If the lawsuit's outcomes lead to changes in how commissions are... 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
NAR Commission Lawsuit
The NAR Commission Lawsuit: A Comprehensive Update for 2023 The NAR Commission Lawsuit is a pivotal legal battle involving the National Association of Realtors (NAR) that has the potential to reshape the real estate industry. This lawsuit has garnered significant attention due to its focus on commission structures and antitrust allegations. This article aims to provide a comprehensive update on the NAR Commission Lawsuit as of 2023, including key testimonies, legal statuses, and potential implications for the real estate sector. Key Cases Under the NAR Commission Lawsuit Burnett v. National Association of REALTORS et al. Case No: 4:19-cv-00332-SRB (W.D. Mo. 2019) Filed: April 20, 2019 Allegation: Home sellers unfairly pay the commissions of buyers' brokers. Status: Trial to begin on October 16, 2023. Sitzer/Burnett Buyer-Broker... Read more