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In a year jam-packed with big news for the real estate industry, Inman readers have determined which stories and industry topics moved the needle the most: the commission lawsuits settlement and industry practice changes.
That’s right — “NAR agrees to sweeping changes in $418M commission settlement” and “Michael Ketchmark: Every move you make, we’ll be watching you” will advance to the finals in Inman’s News Knockout of 2024 to decide which story will be crowned as the top story of the year.
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The final two stories have inarguably changed how agents and brokers do business this year, and will no doubt impact policy adjustments and actions by the National Association of Realtors in the year to come.
But which story will rise to the top of 2024’s lineup? Cast your vote now to decide.
Bracket 1: Commission lawsuits settlement vs. Practice changes
“NAR agrees to sweeping changes in $418M commission settlement”
By Taylor Anderson
All eyes were on the National Association of Realtors this year as the association announced its $418 million proposed settlement of the antitrust commission lawsuits that had rocked the industry for the last few years. The settlement, which NAR will be paying out over the next four years, also stipulated a series of industry practice changes that agents, brokers, associations and MLSs had to put into effect by Aug. 17, 2024.
Among them, NAR agreed to not create rules that allow listing agents to set compensation for buyer brokers. The association also created a new rule prohibiting offers of compensation from appearing in the MLS. Buyer brokers who are MLS participants would also be required to enter into a written representation agreement before touring homes.
The terms of the settlement fundamentally changed the way real estate professionals view their roles as salespeople and advisors, and has already started to impact the way in which consumers view the industry, early Inman Intel data shows.
“Michael Ketchmark: Every move you make, we’ll be watching you”
By Andrea V. Brambila
In advance of major industry practice changes that went into effect on Aug. 17, real estate professionals scrambled to ensure they had the approved paperwork and new client conversations all lined up. As new contracts in some locales were rolled out, reversed, and rolled out again, it had some agents on edge, wondering if they were truly prepared for the big day.
On top of it all, the seller plaintiffs’ attorneys in the legal battle against NAR and industry players suggested that they would continue to keep the pressure on and that the industry should be ready for that.
Michael Ketchmark, the lead counsel for plaintiffs in the Sitzer | Burnett case told Inman, “If anyone thinks they’re going to be able to avoid the application of this settlement agreement and the law by creating some new forms or hiding this cooperation on new websites, they’re wrong. If we get any sense that people or corporations are doing that out there as a way around this, we plan on taking swift legal action.”
