We’ve been covering this issue over the past few years…now comes a major development: Various news outlets are reporting that the National Association of Realtors announced that a settlement has been reached ending litigation claims brought on behalf of home sellers related to broker commissions. Under the terms of the settlement, the NAR agreed to pay $418 million and it resolves claims against NAR, over one million NAR members, all state/territorial and local REALTOR associations, all association-owned MLSs, and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below. This is a developing issue…stay tuned.
According to the Wall Street Journal:
“The $418 million agreement will make it easier for home buyers to negotiate fees with their own agents and could lead more buyers to forgo using agents altogether, which has the potential to drive down commission rates and force hundreds of thousands of agents out of the industry.”
“Buyers are likely to be more price conscious when selecting an agent and might opt to save money by not using an agent at all, or by paying their agent a smaller fee in exchange for limited services. For example, a buyer could pay an agent to put together an offer and review an inspection report, but not to accompany the buyer on home tours.”
In a media release, the National Association of Realtors said:
“The settlement, which is subject to court approval, makes clear that NAR continues to deny any wrongdoing in connection with the Multiple Listing Service (MLS) cooperative compensation model rule (MLS Model Rule) that was introduced in the 1990s in response to calls from consumer protection advocates for buyer representation. Under the terms of the agreement, NAR would pay $418 million over approximately four years.”
“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers. It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals,” said Nykia Wright, Interim CEO of NAR.
This is a developing issue…stay tuned.
Click here to read the full media release at the NAR.
Click here to read more at the Wall Street Journal.
