THE NAR SETTLEMENT
The NAR lawsuit and settlement changes take effect on August 17th, 2024. While this has been a major topic of discussion in the real estate world, I want to ensure you are informed with correct information as we navigate this historical change together.
Sitzer-Burnett is a class-action lawsuit that was filed in Missouri federal court by a group of home sellers in the state against NAR and other defendants, including Anywhere, Berkshire Hathaway HomeServices, Keller Williams & RE/MAX
THE CLAIM
The plaintiffs claimed that real estate commission rates are too high, buyers’ representatives are paid too much, and NAR’s Code of Ethics and MLS Handbook, along with the corporate defendants’ practices, lead to inflated commission rates.
THE VERDICT
The ruling is the Sitzer/Burnett v. NAR lawsuit determined that the National Association of Realtors (NAR), along with Keller Williams and HomeServices of America, were guilty of colluding to keep real estate commission rates artificially high.
THE ROAD AHEAD
As of July 2024, sellers offering to pay for the buyers' broker for their representation will no longer be communicated through the MLS. Any commission to the buyer broker paid by the seller as a buyer incentive will be communicated off-MLS through negotiation and consultation with real estate professionals
Sellers retain the choice to offer compensation to buyer brokers. The seller's agent must disclose any offer of payment to the seller in writing and obtain their approval before proceeding. The disclosure must specify the amount or rate of the payment.
Buyers working with agents who are members of the MLS are required to sign a written agreement prior to touring any real estate. The agreement defines the agent's responsibilities to the buyer and agreed-upon compensation. This also limits the compensation to the amount agreed upon regardless of any additional incentives offered by the seller.
IN SUMMARY
While the NAR settlement restricts the way offers of compensation are communicated, it doesn't prevent sellers from offering commissions to buyer brokers as an incentive. The process is now more complex and requires careful communication and written agreements with full disclosure of agent fees before any real estate service is rendered and I personally think this is a great change!
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While the NAR settlement restricts the way offers of compensation are communicated, it doesn't prevent sellers from offering commissions to buyer brokers as an incentive. The process is now more complex and requires careful communication and written agreements with full disclosure of agent fees before any real estate service is rendered and I personally think this is a great change!
Sincerely,
RHONDA TREVINO
P.S. pic is my dog Sofie and Grandbaby Ella
