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
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
NAR Lawsuit Update 2023
NAR Lawsuit Update 2023: Key Testimonies and Implications for the Real Estate Industry The National Association of Realtors (NAR) is currently embroiled in a series of lawsuits that have the potential to reshape the real estate industry. One of the most notable cases is the Sitzer/Burnett buyer-broker commissions trial. This article aims to provide an in-depth update on the NAR lawsuit as of 2023, focusing on key aspects like commission structures, class-action status, antitrust allegations, and recent testimonies from industry leaders. Key Lawsuits and Their Status 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 Commissions... 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