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Each week on The Download, Inman’s Christy Murdock takes a deeper look at the top-read stories of the week to give you what you’ll need to meet Monday head-on. This week: Everything you know about commissions is poised to change as NAR reaches a massive $418 million settlement.
Well folks, if you thought you were going to slide on into the weekend without the commission question rearing its ugly head, you were sadly mistaken. Everyone, from agents to consumers to the stock market, is buzzing from the news that NAR has agreed to a settlement in Sitzer | Burnett and the host of so-called copycat seller commission lawsuits that followed its Halloween verdict.
NEW INTEL RESULTS: ARE YOU CONSIDERING AREA?
In addition to the cash layout of $418 million over the next four years, NAR has agreed to new rules around offers of compensation which are poised to take effect in mid-July.
NAR agrees to sweeping changes in $418M commission settlement by Taylor Anderson
In a move that promises to change nearly everything about the way agents operate, and the way clients buy and sell homes, The National Association of Realtors has agreed to settle the deluge of commission lawsuits.
NAR is set to pay $418 million in damages over the next four years and has agreed to multiple reforms as part of the settlement, the group said Friday. Among these, NAR said it would agree not to create rules that allow listing agents to set compensation for buyer brokers. In addition, offers of compensation would no longer be displayed in the multiple listing services.
The proposal is likely to be carefully scrutinized by the Department of Justice, which showed it wouldn’t accept settlements if it felt they didn’t lead to enough reform.
EXTRA: If you want to hear about the settlement straight from the horse’s mouth, you’ll find food for thought in this new video from NAR President Kevin Sears and Chief Legal Officer Katie Johnson.
WATCH: Ed Zorn, NextHome CEO on the $418M NAR settlement
NextHome CEO James Dwiggins, Strategic Officer Keith Robinson and Ed Zorn, the California Regional MLS general counsel, tackle NAR’s big settlement exclusively at Inman.
27% of agents are now considering joining trade group AREA: Intel
Ahead of the National Association of Realtors’ commission settlements Friday, some agents are reevaluating their memberships and considering the American Real Estate Association instead.
Christy Murdock is a freelance writer, coach and consultant and the owner of Writing Real Estate. Connect with Writing Real Estate on Instagram and subscribe to the weekly roundup, The Ketchup, in either newsletter or podcast form.
