As you’ve probably heard, there is a proposed settlement by The National Association of Realtors® (NAR) that has been the talk of the town this past month. I wanted to share what all this would mean to you if the proposed settlement is approved:
Last month, the National Association of Realtors reached a settlement in a class action lawsuit that changes how home buyers and sellers will interact with real estate agents for future transactions.
The Sitzer-Burnett lawsuit is a class action suit filed in U.S. District Court litigated in the Western District of Missouri. The suit alleged that the largest real estate associations and companies conspired to set compensation rates for the real estate industry.
If accepted by the courts, the settlement would require the National Association of Realtors to pay $418 million over four years.
The association will remove compensation information for buyers’ agents from The MLS ( the multiple listings services). The settlement also requires NAR members to use Buyer Representation Agreement for buyer starting in mid-July,.
The settlement agreement does not prevent sellers from paying a buyers’ agent or eliminate the commission-based model that’s become commonplace. The settlement agreement limits information that’s shown on multiple listing services regarding buyers’ agents compensation.
We will continue to keep you updated and positioned to handle these changes in the housing market while providing the best possible experience for our clients.
Please feel free to reach out for coffee or a chat with any questions, I am here for you!
Laura