The National Association of Realtors (NAR) is on the verge of making a pivotal decision about its controversial Clear Cooperation Policy (CCP)—a rule requiring listings to be submitted to a multiple listing service (MLS) within one business day of public marketing. Now, attorney Michael Ketchmark, lead counsel in the landmark Sitzer lawsuit, has issued a stark warning: if NAR brokers vote to maintain the rule, he may take legal action against them.
Ketchmark, in an interview with Inman News, made his stance clear: “It’s my expectation that after this meeting, when this comes to a NAR vote overall, that they’ll do the right thing and remove that policy and let the free market continue to work.” He added that if the rule remains, his firm will scrutinize the motivations of those involved and determine whether anti-competitive behavior is at play. “We’ll take the depositions of the people involved and figure out exactly why they did that and what was the motivation behind it, and then make a decision at that point on how to proceed,” Ketchmark told Inman.
Legal Pressure Mounts Against NAR’s Listing Rules
The Clear Cooperation Policy, introduced in 2020, was originally designed to increase listing transparency and prevent pocket listings, which some argue allow brokers to double-end deals at the expense of consumer choice. However, opponents—including brokers, agents, and consumer advocates—argue that the rule violates antitrust principles by forcing listings into MLSs, thereby restricting homeowner control over marketing strategies.
NAR’s recent $418 million settlement in the Sitzer and related lawsuits has already forced major industry changes, including the decoupling of buyer agent compensation from listing agreements. Now, Clear Cooperation is in the crosshairs as another rule that may not withstand legal scrutiny.
Ketchmark emphasized that his issue is not with NAR itself, which he acknowledged has upheld its obligations under the settlement. Instead, his focus is on individual brokers who would vote to uphold the rule. “I don’t want anybody to suggest or think that I’m threatening the National Association of Realtors,” Ketchmark said, “but what I am saying is that whoever is voting to continue and enforce this rule, if we believe that it is done with anti-competitive goals in mind, that we will take their depositions and will hold anyone who is involved in that responsible.”
A Better Alternative: ‘MLS Exclusive’ Listings
As the debate over Clear Cooperation continues, one practical alternative gaining traction is an “MLS Exclusive” listing category. This approach would require all listings to be entered into the MLS, ensuring maximum exposure to real estate professionals while addressing seller privacy and security concerns.
Unlike traditional “office exclusive” listings—where properties are only shared within a single brokerage—MLS Exclusive listings would still be accessible to every licensed real estate professional in the MLS. For example, in the St. Louis area, MARIS (Mid-America Regional Information Systems) serves over 16,000 real estate professionals, all of whom would have access to MLS Exclusive listings.
This means that a seller’s property could still reach a vast network of professionals actively working with buyers, without being publicly displayed on thousands of websites like Zillow, Realtor.com, or IDX feeds on brokerage sites. For sellers who value privacy—such as high-profile individuals, those facing personal security concerns, or those in sensitive situations like divorce or estate sales—this provides an ideal balance between market exposure and confidentiality.
This solution eliminates the anti-competitive concerns of private “pocket listings” while preserving the seller’s right to control how their home is marketed. It also ensures that real estate professionals remain central to the transaction, offering expert guidance to both buyers and sellers without unnecessary public exposure.
The Future of Clear Cooperation
With NAR expected to vote on the policy by the end of the month, the fate of Clear Cooperation—and potentially more lawsuits—hangs in the balance. If Ketchmark follows through with legal action, brokers who support keeping the policy may find themselves on the defensive in court. Meanwhile, the industry must consider whether MLS Exclusive listingsoffer a more viable solution that protects both consumer choice and market integrity.
MORE, REALTORS®: A Smarter Approach to Real Estate
At MORE, REALTORS®, we believe in transparency, innovation, and putting sellers’ needs first. We continue to advocate for better listing solutions that maximize exposure while respecting seller privacy, and we’re committed to helping buyers and sellers navigate these changes in a way that makes sense for them. If you’re looking for a real estate brokerage that understands the industry’s evolution and prioritizes your best interests, let’s talk.
The National Association of REALTORS® (NAR) recently released its 2024 Member Profile, offering valuable insights into the business activity of REALTORS®. One of the most compelling findings is in Chapter 2, particularly Exhibit 2-6, which sheds light on the number of residential transaction sides completed by agents. Here’s what the data reveals and why it matters.
Residential Sides: A Snapshot of REALTOR® Activity
In 2023, the median number of residential transaction sides completed by REALTORS® was 10, a decline from prior years, reflecting the challenges of the current housing market. The breakdown of residential sides highlights the disparity in activity levels:
27% of REALTORS® completed 1 to 5 transactions.
22% completed 6 to 10 transactions.
15% completed 11 to 15 transactions.
19% reported 21 to 50 transactions.
Only 3% completed 51 or more transactions.
Agents with 16 years or more of experience reported a higher median of 12 transactions, compared to just 2 for those with 2 years or less experience. This highlights the significance of experience in navigating market complexities and building a robust client base.
Key Factors Influencing REALTOR® Productivity
The report identifies several factors impacting residential business activity:
Lack of Inventory and Housing Affordability: Both factors tied for the top reason REALTORS® cited as limiting client transactions, with 26% of respondents selecting these challenges. The tight housing market, combined with rising home prices and interest rates, continues to constrain transaction opportunities.
Mortgage Rate Expectations: The expectation that mortgage rates might drop was another factor, cited by 19% of REALTORS®. This suggests that both buyers and sellers are hesitating, waiting for more favorable conditions.
Referral and Repeat Business: Experienced agents benefit significantly from their established networks. REALTORS® with 16 years or more experience derived a median of 42% of their business from repeat clients and 29% from referrals. In contrast, agents with less than two years of experience reported little to no repeat or referral business.
Why These Numbers Matter
For REALTORS®, understanding the trends in transaction sides and business sources provides actionable insights for strategizing in a competitive market. Key takeaways include:
Building Relationships is Critical: Referral and repeat business remain foundational for sustained success. Newer agents should prioritize networking and client relationship management to establish a long-term pipeline.
Adapting to Market Challenges: The constrained inventory and affordability issues demand innovative strategies, such as leveraging off-market opportunities and sharpening negotiation skills to help clients navigate the tough market.
The Value of Experience: The data underscores the advantages of experience, not just in transaction volume but also in accessing repeat and referral business. Mentorship and learning from seasoned agents can accelerate the growth of newer REALTORS®.
This data, outlined below, highlights the importance of continuous improvement and innovation in real estate. At MORE, REALTORS®, we pride ourselves on equipping our agents with the tools, training, and proprietary resources they need to excel. By fostering a culture of learning and providing cutting-edge solutions, our agents consistently outperform the market average, delivering exceptional service to clients and driving greater business success.
NAR 2024 Member Profile – Transaction Sides by Agents
(click on table below to view all information from report)
The real estate industry’s relationship with the National Association of Realtors faces mounting challenges as multiple lawsuits emerge nationwide. Texas broker Lou Eytalis recently joined others in challenging NAR’s mandatory membership requirements for MLS access (see lawsuit complaint below), with similar cases in Michigan, Pennsylvania, and Louisiana. These suits coincide with controversy over NAR’s Standard of Practice 10-5, which has sparked First Amendment challenges from both brokers and agents who argue the rule improperly restricts speech by banning hate speech and discriminatory language on personal social media accounts.
These legal challenges come amid a turbulent period for NAR, which faces scrutiny over sexual harassment allegations, spending practices, and commission lawsuits. The Free Speech Coalition, representing real estate professionals across multiple states, argues that NAR’s speech restrictions exceed their authority and violate constitutional rights. Meanwhile, Eytalis and others contend the mandatory membership issue extends beyond fees – it’s about forcing change within an organization they believe has lost touch with members’ needs. While NAR maintains local organizations control MLS access rules, their intervention preventing Phoenix Realtors from offering membership-free MLS access suggests otherwise. The convergence of these suits – challenging both membership requirements and speech restrictions – represents growing industry pushback against NAR’s regulatory reach.
The Supreme Court yesterday declined to review the National Association of REALTORS’ (NAR) appeal to block the Department of Justice (DOJ) from resuming its antitrust investigation. This decision allows the DOJ to reopen its probe into NAR’s practices, including the Clear Cooperation Policy and the Participation Rule, both of which have been criticized for limiting competition in the real estate industry.
The Clear Cooperation Policy requires listing brokers to submit a property to their Realtor-affiliated MLS within one business day of marketing it publicly. This policy was intended to ensure transparency but has faced allegations of reducing competition and restricting options for consumers. The Participation Rule, which NAR recently eliminated as part of a separate settlement, previously required listing brokers to make a blanket offer of compensation to buyer brokers to list properties in the MLS. The DOJ had issued a subpoena in 2021 requesting extensive documentation on these rules, signaling its intention to assess whether they hindered fair market practices.
For St. Louis homeowners and investors, the outcome of this investigation could lead to significant changes in how properties are marketed and sold. It’s a reminder of the evolving landscape in real estate and the importance of staying informed. As always, MORE Realtors INLINE TEXT Link – goes to agent website MORE, REALTORS® is here to provide guidance and insights to help you navigate these developments. Contact us today to learn how we can help you with your real estate needs.
The National Association of Realtors’ 2024 Profile of Home Buyers and Sellers provides fascinating insights into the evolving preferences and demographics of today’s real estate market. As reflected in the charts below, buyers continue to seek homes and neighborhoods that align with their lifestyles and values, while trends in home size, type, and location highlight shifting priorities.
Key Highlights from the Report
Family Dynamics in Home Purchases: The share of homebuyers without children under 18 in the home has risen significantly, reaching 73% in 2024, compared to just 41% in 1981. This trend underscores how demographic changes are shaping the housing market, with more buyers focusing on personal preferences or retirement needs rather than family-centric requirements.
Neighborhood Selection Drivers: When choosing a neighborhood, 59% of buyers cited the quality of the neighborhood as the top factor, while proximity to friends and family came in second at 45%. Affordability, shopping convenience, and walkability were also notable influences.
What Homebuyers Want: Detached single-family homes remain the gold standard, with 75% of buyers opting for this type of property. However, preferences between new and previously owned homes differ—31% of buyers chose new homes for features like energy efficiency, while 31% opted for previously owned homes citing better overall value.
Emerging Trends in Home Sizes and Environmental Features
The report reveals that the median size of homes purchased by first-time buyers remains modest at 1,500 square feet, while repeat buyers prefer larger homes averaging 2,000 square feet. Meanwhile, the importance of energy-efficient features continues to grow, with heating and cooling costs cited as very important by 33% of buyers.
For those interested in diving deeper, the complete report can be accessed below. As always, if you’re considering buying or selling a home in the St. Louis metro area, the expert agents at MORE, REALTORS® are here to assist. We pride ourselves on understanding the market trends and finding the perfect fit for your needs. Contact us today to explore your options!
The 2024 Profile of Home Buyers and Sellers, published by the National Association of Realtors (NAR), provides a detailed look at the trends shaping the real estate market. One of the most striking takeaways is the continued rise in the age of first-time home buyers. In 2024, the median age of first-time buyers is 38 years—a dramatic jump from 29 yearsin 1981. This increase reflects the growing challenges young buyers face, including rising home prices, student loan debt, and tighter lending standards. The chart below vividly illustrates this trend over the past four decades.
In contrast, repeat buyers now have a median age of 61 years, as seasoned homeowners return to the market later in life. For all buyers, the median age has reached 56 years, a significant shift from the past. These changes highlight the growing complexity of homeownership in today’s market, where affordability and economic pressures are driving buyers to delay their purchases.
As buyers grow older, their household composition has also changed. This year, 73% of buyers reported having no children under 18 at home, compared to 59% in 1981. This shift suggests evolving priorities among today’s buyers, many of whom are opting for homes that meet their lifestyle needs rather than focusing solely on family size.
At MORE, REALTORS®, we understand these changing dynamics and specialize in helping buyers and sellers navigate the real estate market, whether you’re a first-time buyer, a seasoned homeowner, or simply exploring your options. Contact us today to learn how we can help you make informed, confident real estate decisions. For even more insights, explore the full NAR report by clicking HERE and check out the charts below to better understand today’s home buyer.
The landmark settlement in the Burnett (Sitzer) v. National Association of Realtors (NAR) class action lawsuit has officially received final approval from U.S. District Judge Stephen R. Bough on November 27, 2024. This settlement is set to impact millions of homeowners across the U.S., offering substantial financial restitution and mandating significant changes in real estate practices. The full details of the court’s order and settlement terms are provided in the document below.
Judge Bough emphasized the fairness of the settlement, noting that it provides “substantial benefits to the class” while ensuring equitable treatment of all members. Over 491,000 claims have been filed as of November 14, 2024, with claims open until May 2025. Below are the key highlights:
Financial Compensation: Settlement class members who paid real estate commissions through any MLS-affiliated transaction are eligible for compensation.
Industry Practice Reforms: Changes include greater transparency in commission structures and improved practices across participating brokerages.
Comprehensive Notice Program: Nearly 40 million notices were sent, ensuring a broad reach, with over 300 million digital impressions.
Minimal Objections: Despite the large class size, only 39 members opted out, and objections were minimal.
Judge Bough described the settlement as “a significant and swift recovery for the Class,” underscoring its importance in resolving complex antitrust claims while avoiding protracted litigation.
For those in St. Louis, this settlement underscores the value of informed real estate practices. At MORE, REALTORS®, we are committed to transparency and exceptional service, ensuring buyers and sellers have the support they need in an ever-evolving market.
Learn more about the settlement and its implications by reviewing the full order below.
Burnett vs The National Association of REALTORS Settlement Order
A recent Notorious P.O.D. interview with Wilson Fauber, a Virginia real estate broker and ordained minister, has brought renewed attention to the National Association of Realtors’ (NAR) controversial Standard of Practice 10-5. The rule prohibits hate speech, epithets, and harassing language by Realtors® at all times, including outside their professional lives.
Fauber faces an ethics hearing over social media posts he made years before the rule’s enactment, including one quoting scripture. Supporters argue the rule ensures a welcoming environment for all, while critics believe it infringes on personal freedoms and is being selectively enforced.
Why This Matters to Agents
The case raises concerns about how far professional organizations should extend their oversight into private speech. With potential penalties including fines, loss of MLS access, and more, some see the rule as a necessary step toward accountability, while others view it as overreach.
As the real estate industry navigates these debates, Fauber’s case highlights a pivotal moment for Realtors® to reflect on the balance between ethical guidelines and personal freedoms.
Notorious POD: NAR Speech Code Strikes Again, with Wilson Fauber
The New York Times published a detailed investigation yesterday into the spending practices of the National Association of REALTORS® (NAR), raising significant questions about the organization’s leadership and its stewardship of member dues. The report, titled “Chauffeured Cars and Broadway Tickets: Inside the National Realtors Group,” written by Debra Kamin, explores what some describe as a culture of excess and self-interest within one of the largest trade associations in the United States.
The investigation reveals that NAR’s top executives and elected leaders have enjoyed a range of extravagant perks, from luxury hotel suites and first-class travel to private club memberships and even pet-sitting expenses. According to Kamin, former CEO Bob Goldberg, who resigned last year, received a compensation package that included a $1.2 million salary that grew to $2.6 million over five years, a $1,500 monthly car allowance, and paid pet care while on business trips. NAR officials defended these expenditures as necessary for the demands of leadership, but nonprofit law experts cited in the article raised concerns about potential violations of tax laws.
Adding to the controversy, NAR has faced mounting legal challenges, including a recent $418 million settlement related to a Missouri lawsuit over inflated commissions. Kamin reports that some REALTORS® feel abandoned by an organization that has historically promised to protect their interests. As real estate strategist Rob Hahn put it, “When N.A.R. gets its ass kicked in every lawsuit and then throws brokers under the bus, it’s like, what am I paying for?”
At MORE, REALTORS®, we understand the importance of upholding the original ideals of professionalism and integrity that once defined NAR. While the current controversies highlight systemic issues within the organization, they also serve as a reminder of why ethical and responsible leadership matters more than ever. At our brokerage, we set high standards for ourselves and the agents we work with, staying true to the spirit of Charles Chadbourn, who coined the term REALTOR® over a century ago.
The term “REALTOR®” is one of the most recognized in the real estate industry, but its meaning is often misunderstood. While many people assume all real estate agents are REALTORS®, that’s not the case. The distinction goes beyond holding a license—it’s tied to a specific organization, a shared history, and a professional designation with legal and ethical implications. Let’s explore where the term comes from, how it’s protected, and what it means today.
A Brief History of the Term
The term “REALTOR®” was coined in 1916 by Charles N. Chadbourn, a real estate agent who sought to create a professional identity for members of the National Association of Real Estate Boards, now known as the National Association of REALTORS® (NAR). Chadbourn wanted to distinguish professionals who adhered to a defined code of ethics and elevated the standards of the real estate profession. In 1949, the term was trademarked by NAR, giving the organization exclusive rights to its use.
This trademark ensures that only members of NAR can use the term “REALTOR®,” much like the way “Kleenex” refers to a specific brand of tissues rather than all tissues. It’s a legal designation that differentiates REALTORS® from other licensed agents—but it’s not a guarantee of superior service or moral standing.
The REALTOR® Difference: What It Means Today
To use the title, REALTORS® must agree to abide by NAR’s Code of Ethics. While this code aims to set higher standards for professional conduct, much of it aligns with basic legal requirements that agents must already follow under state laws. Critics argue that the organization’s focus has shifted over time, and its standards may not be as rigorous as they once were. Recent controversies, lawsuits, and leadership issues within NAR have further complicated its reputation, raising questions about its ability to fulfill its founding mission.
Still, the term “REALTOR®” holds historical significance as a symbol of professionalism, and it serves as a reminder of the original intent set forth by Chadbourn: to foster trust and integrity in real estate.
Why This Matters to Buyers and Sellers
For buyers and sellers, understanding the distinction between a licensed agent and a REALTOR® is essential. However, designations alone don’t define the quality of service or ethical standards an agent upholds. At MORE, REALTORS®, our focus isn’t just on being members of NAR. We strive to set the bar higher by surrounding ourselves with agents who embody integrity, professionalism, and a commitment to doing what’s right. This is the spirit of Charles Chadbourn’s vision, even if the broader organization has strayed from its original path.
If you’re looking for a team that values high moral and ethical standards, MORE, REALTORS® is here to guide you. Our agents are committed to not just meeting but exceeding the expectations of those we serve. After all, real estate isn’t just about buying and selling homes—it’s about trust, relationships, and doing what’s right.
In his recent article, “Repeal the Speech Code,” Rob Hahn has urged the National Association of REALTORS® (NAR) to reconsider its controversial Standard of Practice 10-5. This policy, implemented in 2020, prohibits REALTORS® from using harassing or hate speech, epithets, or slurs based on protected classes, such as race, religion, and gender identity, in both professional and personal settings. Hahn argues that while intended to promote inclusivity, the policy overreaches and restricts REALTORS®’ freedom of speech outside of real estate-related activities.
The case of Brandon Huber, a REALTOR® and pastor, illustrates Hahn’s concerns. Huber was penalized under Standard of Practice 10-5 after making statements as a church leader unrelated to his real estate profession. His case raised questions about the balance between personal belief expression and professional standards, with Hahn emphasizing that the Speech Code “tells members what they can and cannot say in their private lives.” Similarly, NAR has faced debates over whether misgendering or expressing personal political beliefs could be deemed hate speech, as highlighted in discussions covered by Inman News. REALTORS® questioned how subjective interpretations might lead to unintended disciplinary actions, such as mistakenly using the wrong pronoun or expressing certain religious beliefs.
Hahn argues that repealing Standard of Practice 10-5 would not only protect REALTORS®’ personal freedoms but could also avoid divisive conflicts within NAR’s membership. He warns that maintaining the Speech Code may alienate members and draw unwanted attention from a new administration focused on freedom of speech. As Hahn states, “The right thing to do is sometimes the smart thing to do. When that happens, the only thing to do… is to do it.”
The full text of Hahn’s article is available below for those interested in the broader implications of this policy on NAR’s members and the real estate industry.
The National Association of REALTORS® (NAR) 2024 Profile of Home Buyers and Sellers provides a comprehensive look at trends shaping the real estate market this year. From changing demographics to buyer challenges, this report highlights critical shifts in homebuying and selling behaviors. The full report is available below for readers who wish to explore it in detail.
One of the most notable trends is the rising age of both first-time and repeat homebuyers:
First-time buyers now have a median age of 38, marking a significant shift from the late-20s median seen in the 1980s. This increase reflects the growing challenges of affordability and tighter lending standards.
Repeat buyers have also reached an all-time high median age of 61, suggesting that many established homeowners are now looking to downsize, relocate, or move closer to family.
The report further indicates a strong preference for using real estate professionals. A remarkable 88% of buyers purchased their homes with the assistance of a real estate agent. The majority valued support in:
Finding the right property (49%)
Negotiating terms (14%)
Managing paperwork (7%)
These services are particularly important as buyers continue to face a competitive market with low inventory levels and relatively high prices.
On the selling side, the report highlights the quick turnover in home sales. Sellers typically achieved 100% of their asking price and sold their properties within an average of three weeks. This reflects strong demand and a limited supply of homes for sale, allowing sellers to command competitive prices and rapid sales.
For anyone considering a move, the insights in NAR’s 2024 Profile of Home Buyers and Sellers can serve as a valuable guide. For personalized advice, the experienced agents at MORE, REALTORS® are here to assist you with every step of your real estate journey. Please refer to the full NAR report below to explore additional insights and trends.
National Association of REALTORS® 2024 Profile of Home Buyers and Sellers
Tanya Monestier, a tenured law professor at the University at Buffalo School of Law and former professor at Roger Williams University School of Law, has stepped into the Sitzer v. NAR lawsuit with a compelling and meticulously researched objection to the proposed settlement. Monestier, whose academic work on contract law and consumer protection has been cited by courts across North America—including the United States Court of Appeals and the Supreme Court of Canada—brings a formidable legal background to her critique. Her objection portrays the settlement as a superficial, paper-only solution that leaves consumers vulnerable to the same anti-competitive practices it claimed to remedy. As Monestier puts it, “The settlement makes sense—but only on paper… In the real world, the implementation of the settlement has been a disaster.”
Monestier argues that the industry’s entrenched practices remain unchallenged by the settlement. Steering persists, commissions are still locked at 5-6%, and sellers continue to shoulder both agents’ fees, contrary to the supposed reforms. She warns, “What matters is how the settlement is being implemented in real life. And it is being implemented in a way that preserves the status quo of sellers paying both brokers.” Her objection underscores the reality that, rather than empowering buyers to negotiate their agents’ compensation, the industry has doubled down on its old ways, sidestepping reform.
Another alarming aspect of Monestier’s objection is her contention that the settlement introduces confusion instead of clarity, leaving both buyers and sellers struggling to navigate a complex, quasi-regulatory landscape. “As long as this is possible, the current system of seller-financed commissions will remain intact,” she argues, stressing that this agreement risks setting the industry back by reinforcing behaviors it purported to dismantle.
Monestier’s objection is a call to action for the court to reconsider the settlement’s adequacy and fairness, cautioning against accepting it at face value. She warns, “Unless someone speaks up, this Court is likely to be convinced that this settlement is ‘fair, reasonable, and adequate.’ It is not. It simply reinforces the existing system of seller-paid inflated compensation while pretending to eliminate it.” For those interested in the full details of her objection, the complete document is available for review below.
See the entire objection that Tanya Monestier filed with the court HERE
For the past few years, the National Association of Realtors’ (NAR) Clear Cooperation Policy has been a focal point of contention, sparking debate across the real estate industry. The rule, which mandates that any property being marketed to the public must be listed on the MLS within one business day, was introduced with the intention of promoting transparency and ensuring equal access to listings for agents and buyers alike. However, the policy has faced consistent opposition from various quarters, with critics arguing that it hampers the ability of agents to serve their clients’ best interests and limits consumer choice.
As I have highlighted in previous articles, the real problem with this rule is that it imposes a one-size-fits-all solution on a very diverse set of circumstances. Agents with every intention of putting a listing in the MLS may find themselves constrained by the policy’s rigid timeline and prohibitions, limiting their ability to execute marketing strategies tailored to the needs of their clients.
A Misrepresentation of Intent
One of the most frustrating aspects of the debate around the Clear Cooperation Policy is the disingenuous portrayal of the issue by some proponents of the rule. They often frame the opposition as a desire to keep listings out of the MLS entirely, suggesting that agents pushing back against the rule are simply looking for ways to avoid sharing information. In reality, many agents, including myself, are primarily concerned with the restrictions the rule places on how and when we can promote a property before it hits the MLS.
For example, an agent might want to place a “coming soon” sign in a seller’s yard as soon as the listing agreement is signed, even if the seller isn’t ready to show the property for a few weeks. Or a seller may want to share on social media that their home will be available once a few repairs are completed. The Clear Cooperation Policy effectively bans such practices, even if the intent is to eventually list the property on the MLS. These restrictions can prevent agents from building pre-market buzz, which often results in better outcomes for sellers.
Where the Industry Stands
Currently, the industry is deeply divided over the Clear Cooperation Policy. Some argue that the rule ensures fairness and transparency, preventing large brokerages from “hoarding” listings and selectively sharing them only within their own networks. However, opponents see it as a top-down mandate that ignores the nuanced needs of clients and agents on the ground. This tension is playing out in various forums, with major industry players like Compass and Redfin publicly taking opposing stances.
Additionally, the policy has caught the attention of the Department of Justice (DOJ) and other regulatory bodies, adding a legal layer to what is already a complex situation. The DOJ has reopened its investigation into NAR’s policies, and many are watching closely to see whether the Clear Cooperation Policy might be revised or struck down as part of the broader antitrust concerns surrounding the real estate industry.
What’s Next for the Rule?
In my view, NAR is facing mounting pressure to adapt. While I don’t believe the Clear Cooperation Policy will survive in its current form, NAR has shown a stubborn resistance to change before. However, if they are smart, they will eventually recognize that the rule’s rigidness does more harm than good and will cave to the increasing calls for its removal. The reality is that as the market continues to evolve, the industry needs to be flexible enough to serve the interests of consumers and agents alike — and this policy is increasingly looking like an obstacle rather than a solution.
One potential outcome is that NAR will amend the rule to allow for more flexibility in pre-MLS marketing, which would still ensure the policy’s goals of transparency while respecting agents’ ability to promote listings in a way that benefits their clients. But whether this kind of change will be enough to quell the growing discontent remains to be seen.
The Bottom Line
The real estate industry thrives on cooperation, but cooperation shouldn’t come at the expense of consumer choice or the ability of agents to act in their clients’ best interests. Rather than a rigid mandate, we need a policy that adapts to the realities of the modern market. Until then, I’ll continue to advocate for changes that prioritize clients’ needs over bureaucratic rules.
The National Association of Realtors’ (NAR) Clear Cooperation Policy has been a contentious topic since its inception in 2019. The rule, which mandates that listings must be added to the MLS within one day of being publicly marketed, aims to provide transparency and equal access to all agents and homebuyers. However, as highlighted in anInman News article today, the policy is now facing strong opposition from major real estate firms like Compass and Anywhere Real Estate, both of which are calling for changes that would provide more flexibility to sellers.
This isn’t the first time the Clear Cooperation Policy has been challenged. I have previously discussed this issue in several articles, noting both the potential legal implications under the Sherman Antitrust Act and the practical impacts on homeowners trying to sell their properties effectively. While the policy aims to prevent “pocket listings” and promote fairness, some argue that it actually limits consumer choice by dictating how listings must be shared and marketed. As I mentioned in article I wrote in 2020 about the new rule, New Rule Will Require REALTORS Put All Listings In The MLS Or Not Market Them, while transparency is essential, homeowners should have the flexibility to choose a marketing strategy that best suits their needs.
At MORE, REALTORS®, we adapt to these regulations by leveraging our advanced digital marketing expertise to ensure sellers still get top exposure and results within the constraints of current rules. So, while changes to NAR’s policy may be coming, you can count on us to navigate these shifts and maximize your home’s potential.
There was an opinion piece published today on Inman News by Eric Bramlett that suggests that fears of a widespread shift in commission payments from sellers to buyers are overblown. Bramlett argues, “Sellers are primarily concerned with the net proceeds they’ll receive and the overall terms of the contract.” While I agree that many sellers will still “pay” the buyer’s agent commission, I don’t believe the traditional commission structure will endure. In fact, the St. Louis Association of REALTORS® is in the process of updating the forms that most of the St Louis area REALTORS®, including listing agreement. In this updated version, the seller will only be charged commission for the listing agent, with no provision for offering commission to a buyer’s agent. However, I expect that in many cases, buyers will negotiate for the seller to cover their agent’s commission as part of the overall deal—bringing more transparency to the process and putting the negotiation front and center.
As I’ve emphasized in prior articles about the NAR/Sitzer settlement, the real impact of these changes will be in how commissions are discussed and handled, not whether they are eliminated. This is a pivotal time for agents to educate their clients on the evolving commission landscape, ensuring buyers and sellers both understand who is paying for what and why. At MORE, REALTORS®, we’ve been preparing for this shift, and we’re committed to guiding our clients through these changes with clear communication and expert advice.
This week, on July 23rd, the St. Louis REALTORS® Association implemented new and revised contract forms and agreements for use by Realtors throughout St. Louis and the surrounding areas. These updates are a direct response to significant changes in industry practices resulting from the settlement of massive class action lawsuits by the National Association of Realtors (NAR). For a detailed breakdown of these changes, you can refer to the settlement agreement below.
The revisions aim to align current practices with the legal outcomes of these settlements, ensuring compliance and fostering transparency in real estate transactions. One of the pivotal changes is the inclusion of clear, consistent language that reflects new industry standards and practices mandated by the settlement. This initiative underscores the importance of adapting to evolving legal landscapes to maintain professional integrity and trust with clients.
Upcoming MLS Rule Changes
In addition to the new forms, there are upcoming changes to the MLS rules effective August 1. These new rules will prohibit the display of commission offers to agents working with buyers in the MLS. This change has generated considerable confusion and anxiety among real estate professionals. Many agents are either unaware of the impending changes or are scrambling to figure out workarounds. However, there are dedicated professionals who are well-informed and prepared to adapt seamlessly.
The prohibition on displaying commission offers is intended to enhance transparency in real estate transactions by focusing on the value of the property rather than the commission structures. Despite the noble intent, the rule change has sparked debates within the real estate community, with opinions varying widely on its potential impact.
Embracing Transparency at MORE
At MORE, REALTORS®, we have been closely following these lawsuits since 2019, fully aware that industry changes were imminent. Our proactive approach has allowed us to prepare thoroughly for these changes, ensuring that our agents are not only compliant but also well-versed in the new practices.
We wholeheartedly embrace the idea of total transparency in transactions. This includes being upfront about how our agents are compensated, to whom they owe a fiduciary duty, and whom they represent in each transaction. Our commitment to transparency ensures that clients can trust us to act in their best interests at all times.
In conclusion, the recent updates to contract forms and MLS rules are significant steps towards greater transparency and compliance in the real estate industry. At MORE, REALTORS®, we are ready to lead by example, demonstrating our dedication to these principles and ensuring that our clients receive the highest level of service and trust.
Starting August 17, 2024, the National Association of REALTORS® (NAR) is implementing a new requirement on its members that will impact home buyers and REALTORS® alike. This new rule mandates that REALTORS® must have a written agreement with buyers before showing them any homes. This change is required as part of the settlement agreement of multiple massive class-action lawsuits where NAR was accused of anti-competitive practices. The settlement aimed to increase transparency and fairness in real estate transactions, ensuring that both buyers and agents have a clear understanding of their relationship and obligations. However, there’s a lot of confusion surrounding the new requirement, including some “PSA” messages posted by agents on social media that refer to the required agreement as a “Buyer’s Agency” agreement.
A Buyer’s Agency agreement is used when you wish to engage an agent to represent you as a buyer and establishes obligations upon the agent, including fiduciary duties to put your interests ahead of all others (including themselves). This is certainly the agreement I would recommend buyers use in most cases once ready to commit to an agent. However, while this certainly meets the requirement, it is not the only type of agreement that satisfies NAR’s new rule. In fact, representation is not required at all. Yes, a written agreement is necessary, but it doesn’t have to be a full-blown buyer representation agreement. Any written agreement to show a property will suffice. The intent here is not to complicate the home buying process but to protect buyers and clarify the REALTOR®’s role and responsibilities, including the cost, if any, to the buyer and where the compensation is coming from. It ensures that you understand the services you’re getting and how your REALTOR® will be compensated, making the whole process smoother and more transparent.
Is compensation required under the agreement?
That is, of course, dependent on the agreement itself, but there is no requirement by the NAR settlement that buyers be charged anything to enter into an agreement to be shown a home. Naturally, if the agreement is a Buyer’s Agency agreement where you will, in fact, receive representation, the agent, like every other professional involved in the home buying process, will need to be compensated, and how much and who pays will need to be laid out.
How long does the agreement obligate me?
Again, there is no requirement for the agreement to last any period of time. If it’s simply a showing agreement, it may last long enough for the agent to walk you through the home.
What if the listing agent shows you the home?
If the listing agent is giving you a tour of the home (as the seller’s agent) and not “working with” you, then the agreement may not be required. Personally, though, I think it is still a good idea to use it for transparency so that you, as the buyer, clearly understand whose interest that agent is required to put ahead of yours.
What is required in the “buyer agreement”?
According to the NAR settlement, the following are the only requirements for the agreement that must be signed before showing a home to a buyer they are working with:
Specify and conspicuously disclose the amount or rate of any compensation the MLS Participant will receive from any source.
The amount of compensation must be objectively ascertainable and may not be open-ended (e.g., “buyer broker compensation shall be whatever amount the seller is offering to the buyer”).
Include a statement that MLS Participants may not receive compensation from any source that exceeds the amount or rate agreed to with the buyer.
Disclose in conspicuous language that broker commissions are not set by law and are fully negotiable.
Include any provisions required by law.
At MORE, we are committed to providing exceptional service and ensuring complete transparency throughout your home buying journey. Our experienced agents are ready to guide you through this new process, making it as seamless as possible. Whether you’re a first-time homebuyer or looking for your next investment, MORE Realtors INLINE TEXT Link – goes to agent website MORE, REALTORS® is here to help you every step of the way.
A recent flash poll by T3 Sixty at the NAR Midyear Conference highlights significant dissatisfaction among real estate professionals regarding the National Association of REALTORS® (NAR) and its handling of the ongoing commission lawsuit. View the entire report and survey results below.disa
Key Findings:
Approval of NAR’s Performance:
Only 30% of respondents approve of NAR’s overall performance.
A striking 63% disapprove, indicating widespread dissatisfaction.
Handling of Compensation Lawsuits:
Just 32% approve of NAR’s legal strategies.
A majority of 62% disapprove, showing deep concerns about the settlement’s impact.
At MORE Realtors, we understand the confusion and concerns surrounding these changes. Our experienced team is dedicated to helping homebuyers, sellers, and agents navigate this evolving landscape. We provide clear, comprehensive guidance to ensure you understand how the commission lawsuit outcomes will affect your real estate transactions. Contact us today to learn how we can assist you in making informed decisions in this shifting market.
Lawrence Yun, Chief Economist for the National Association of REALTORS
In his forecast yesterday at the 2024 REALTORS® Legislative Meetings, National Association of Realtors® Chief Economist Lawrence Yun delivered a promising outlook for the real estate market with expectations for rising existing-home sales. According to Yun, the U.S. is likely to see existing-home sales increase to 4.46 million in 2024, a 9% rise from 2023, and surge to 5.05 million in 2025. Yun highlighted, “More jobs mean more home sales and higher housing demand. You need a strong local economy for a strong housing market.”
Additionally, Yun noted a significant calming in rental markets, which will help stabilize the consumer price index, encouraging the Federal Reserve to consider lowering interest rates. He remarked, “The Federal Reserve has delayed rate cuts. I would have thought that, by now, rates would be lower and rate cuts would have begun. Whatever rate cut the Federal Reserve does not do this year will simply get pushed back to 2025.”
For individuals looking to navigate the St. Louis real estate market, the expertise of MORE, REALTORS® can prove invaluable. Our agents are equipped with the latest insights and are prepared to guide clients through the intricacies of buying or selling homes in today’s economic landscape. As Yun emphasized, the strong economic fundamentals support a vibrant housing market, underscoring real estate as a prudent investment for building personal wealth.
St Louis Metro-Area Home Sales and 12-Month Trend – Past 15 Years
Home sellers have reached a momentous $250 million settlement with HomeServices of America and its subsidiaries, including Long & Foster Companies, BHH Affiliates, LLC, and HSF Affiliates, LLC. This settlement, disclosed in a recent press release by the law firm representing the plaintiffs, resolves class action claims as part of a broader dispute over commission costs in the real estate industry.
In a landmark case held on October 31, 2023, a Missouri jury found HomeServices of America, along with the National Association of Realtors (NAR) and Keller Williams, culpable of conspiring to inflate commission fees, resulting in nearly $1.8 billion in damages. While this settlement absolves HomeServices of America from further claims in this specific litigation, it does not extend to Berkshire Hathaway Energy or its affiliates, maintaining their exposure to potential liabilities.
The recent $250 million agreement contributes to a total exceeding $943.25 million in settlements reached in related cases over the past year. Earlier settlements include a $418 million agreement with NAR in March 2024, and others involving major industry players such as Anywhere Real Estate, RE/MAX, Keller Williams, Compass, and Real Brokerage Inc., underscoring a significant reform movement within the real estate brokerage sector.
“These settlements mark a pivotal moment for American home sellers, who have historically been burdened with excessive commission fees,” remarked Benjamin D. Brown, Managing Partner of Cohen Milstein Sellers & Toll. The lawsuit originated from Moehrl, et al. v. National Association of Realtors, which challenged the NAR’s policy requiring home sellers to offer non-negotiable compensation to buyer brokers, significantly affecting the cost transparency and fairness in real estate transactions.
For more detailed information on the implications of these settlements and how they might affect your next real estate decision, consider consulting with a knowledgeable professional at MORE, REALTORS®, whose agents remain at the forefront of industry standards and practices.
In a significant development in the class-action lawsuit against the National Association of Realtors (NAR) and several major real estate entities, the U.S. District Court for the Western District of Missouri has granted preliminary approval for a proposed settlement. This lawsuit, led by plaintiffs Rhonda Burnett, Jerod Breit, Jeremy Keel, Hollee Ellis, and Frances Harvey, represents a class of U.S. homeowners who paid commissions to brokers upon the sale of their homes through multiple listing services during specific periods spanning from 2014 to the present. The court’s decision, as detailed in the document “Sitzer v NAR – Motion for Preliminary Approval of Proposed Settlement – Order Granted,” acknowledges the fairness, reasonableness, and adequacy of the settlement, setting the stage for final approval pending further review and a hearing scheduled for November 2024.
The complete details can be found in the courts order below.
Based on the data from the recent ATTOM report on U.S. commercial foreclosures, there is a noticeable trend that highlights the challenges and changes in the commercial real estate market over the past decade. The report indicates a significant increase in commercial foreclosures, rising to 625 in March 2024 from a low of 141 in May 2020—a time characterized by pandemic-induced economic shocks and responsive fiscal interventions. This sharp rise represents a 117% year-over-year increase and underscores a broader economic narrative where, despite short-term stabilizations, long-term market corrections have been a constant presence.
States like California, New York, and Florida have borne the brunt of these fluctuations. For instance, California experienced a dramatic 405% increase from last year, showcasing how regional factors and state-specific economic conditions have influenced foreclosure rates. This analysis not only offers insights into the challenges faced by the commercial real estate market but also highlights the sector’s resilience and capacity to navigate through a continuum of economic cycles.
The recent spike in commercial foreclosures has raised questions about the interconnectedness of the commercial and residential real estate markets. Historically, these two sectors have shown some level of correlation, as economic factors affecting businesses often spill over into the residential sphere. For instance, a downturn in commercial real estate can lead to job losses and reduced consumer spending, which in turn can soften the residential market. However, the current trends suggest a more complex relationship, with the residential market remaining relatively stable despite significant upheavals in commercial real estate. In the coming months we’ll see if that trend continues.
Since the National Association of Realtors (NAR) and the plaintiffs in the following lawsuits—Christopher Moehrl v. The National Association of Realtors et al., Rhonda Burnett (originally Sitzer) v. The National Association of Realtors et al., Dawin Niel Umpa v. The National Association of Realtors, et al., and Don Gibson v. The National Association of Realtors—reached a settlement agreement on March 15, 2024, which is still pending court approval and thus preliminary at this point, the topic has dominated industry conversations. The focus of these lawsuits on buyer’s agent commissions has attracted more media attention since mid-March than it seems to have received in the over 40 years I’ve been in the business before that. Don’t get me wrong, I’m not saying all this attention is bad. In fact, I believe it is beneficial. I’ve long advocated for educating consumers, feeling that the more home buyers and sellers know, the better decisions they can make. This is why I’m rapidly approaching the milestone of 3,000 articles on the topic of real estate in St. Louis on this site.
Now, I don’t do this solely for altruistic reasons; sharing the information and knowledge I’ve gained either through experience or research is also self-serving. As a broker-owner of MORE, REALTORS®, I’ve put forth just as much effort in sharing knowledge with our agents, and I am blessed to be surrounded by real estate professionals who are as eager as I am to increase their knowledge and hone their skills to better serve clients. Here’s the reward for me: informed and knowledgeable consumers seek out better and more professional agents, like the ones we’re in business with, creating a win-win situation.
Having said all that, while the attention from the media is beneficial, unfortunately, there is a lot of incorrect information out there and assertions being made that don’t seem to be based on facts, but rather on opinion. Oh yes, I have opinions too, plenty of them, many of which are shared on this site, but to the extent possible, I try to base them on facts and include the sources of my opinions.
In the wake of recent legal developments, including a proposed settlement by the National Association of Realtors (NAR) in March addressing buyer agent commissions, the real estate industry finds itself at another critical juncture. This time, attention turns to a lawsuit spotlighted in my article from a week ago, “New Lawsuit Against NAR Spotlights Tying of MLS Access to Realtor Membership in Ongoing Commission Debate“, which challenges the longstanding practice of tying MLS access to Realtor association membership. Unlike the NAR settlement that focused on commission structures, this new legal action delves into the exclusivity of market information access, a matter that has long spurred debate and litigation.
A Recurring Theme in Real Estate Litigation
The intertwining of Realtor association membership and MLS access has been a contentious issue, sparking several lawsuits over the years. This relationship, critics argue, creates barriers to competition and innovation in the real estate market.
Significant Legal Precedents
A pivotal moment in this ongoing discourse was the “Thompson v. Metropolitan Multi-List, Inc. Lawsuit,” where the 11th Federal Circuit Court of Appeals in 1991 ruled against restricting MLS access to Realtor members in Georgia. This case set a significant precedent, affirming that such practices could violate federal antitrust laws if the MLS wielded “market power” in the relevant geographic market.
Further complicating the landscape, California courts in the late 1970s found similar restrictions in violation of state antitrust statutes, thereby requiring Realtor associations in the state to open their MLS to non-members.
Looking Ahead
As the real estate industry continues to evolve, the relationship between REALTOR® associations and MLS access remains a focal point for legal scrutiny and industry reform. The implications of these legal battles extend beyond the courtroom, potentially shaping the future of real estate transactions, market competition, and consumer choice.
While the NAR settlement and recent lawsuits highlight different facets of the industry’s challenges, they collectively underscore a broader call for transparency, fairness, and innovation in real estate practices.
Conclusion
The dialogue surrounding MLS access and REALTOR® association membership is far from concluded. As legal actions continue to unfold, stakeholders across the real estate spectrum must remain vigilant and adaptable to the changing regulatory and business environment. At MORE, REALTORS®, we’re keenly aware of these potential shifts and are proactively strategizing to ensure our agents are well-positioned to navigate any changes that may arise. Our focus remains steadfast on providing exceptional service to our clients, irrespective of the evolving industry dynamics. As always, we’re committed to transparency, adaptability, and unwavering professionalism.
In a significant turn of events that has captured the attention of homebuyers, homesellers, and real estate professionals nationwide, the United States Court of Appeals for the District of Columbia Circuit has delivered a landmark judgment that underscores the intricate balance between regulatory oversight and the operational freedoms of real estate associations. This case, National Association of Realtors (NAR) versus United States of America, et al., centers on the alleged anticompetitive practices within the real estate industry, specifically scrutinizing the policies implemented by NAR.
The Department of Justice (DOJ), through its Antitrust Division, initiated an investigation into NAR’s policies, which culminated in a settlement in November 2020. This settlement aimed to address four out of six policies identified by the DOJ as potentially anticompetitive. Crucially, it also included the issuance of a closing letter by the DOJ, indicating the closure of its investigation into two key NAR policies: the “Clear Cooperation Policy” and the “Participation Rule.” These policies relate to the operation of multiple-listing services (MLSs) and the commission structure within real estate transactions, respectively.
However, in a dramatic shift, the DOJ reopened its investigation into these policies in July 2021, leading to a legal challenge by NAR. NAR argued that the DOJ’s action breached the settlement agreement, which, in their view, included an implicit assurance against reopening the investigation into the specified policies.
The Appeals Court, in its decision, highlighted the legal nuances of the settlement agreement and the scope of the DOJ’s commitments. The court concluded that the settlement did not preclude the DOJ from reopening its investigation. This decision not only emphasizes the DOJ’s ongoing authority to regulate and scrutinize industry practices for anticompetitive behavior but also signals to real estate professionals the importance of adaptive compliance with evolving regulatory landscapes.
This ruling carries profound implications for the real estate industry, reinforcing the principle that regulatory oversight is a dynamic process, subject to revision and reassessment in light of new information or changing circumstances. For homebuyers and homesellers, the decision underscores the government’s commitment to ensuring fair and competitive practices within the real estate market, aiming to protect consumer interests and promote market transparency.
United States Court of Appeals Judgement – NAR vs United States of America
In the evolving landscape of real estate litigation, a fresh lawsuit filed by homeowner Hao Zhe Wang against the National Association of Realtors (NAR) and several major real estate brokerage firms introduces a nuanced critique of industry practices. Distinguishing itself from prior actions, this case zeroes in on the contentious policy requiring real estate agents to be NAR members in order to access Multiple Listing Services (MLS), a stipulation the plaintiff contends unfairly influences commission structures and inflates transaction costs.
The Core Allegations:
At the heart of Wang’s lawsuit is an objection to how MLS access — a critical tool for buying and selling properties — is tied to membership in the NAR. This arrangement, according to the lawsuit, perpetuates a non-competitive environment where commission rates are kept uniformly high due to lack of market-driven pricing. This system, the plaintiff argues, indirectly forces buyers to absorb the cost of buyer’s agent commissions, which are embedded in home purchase prices, in violation of antitrust laws.
Legal Objectives:
Seeking Class Action: The lawsuit aims to achieve class action status, offering representation to a broad swath of home buyers potentially affected by the described practices.
Injunctive Relief and Damages: Beyond seeking damages for alleged overpayments, the complaint calls for judicial intervention to prohibit the continuation of tying MLS access to NAR membership, alongside the existing commission practices.
Industry Implications:
This lawsuit adds another layer to the ongoing discourse on real estate commission models, specifically targeting the structures that underpin agent access to essential market information. By challenging the linkage of MLS access to NAR membership, the case prompts a reevaluation of how such policies impact competition, pricing, and ultimately, consumer choice.
Reflecting on the Bigger Picture:
From an insider perspective, this case illuminates the complex interplay between professional associations, access to market information, and how commissions are structured. It calls into question whether current practices best serve the market’s needs or if they inadvertently constrain competition and innovation. As the real estate industry continues to grapple with these issues, the outcome of this lawsuit could have significant repercussions, potentially catalyzing shifts towards more transparent and consumer-friendly practices.
Hao Zhe Wang v The National Association of REALTORS®
The Council of Multiple Listing Services (CMLS), representing over 200 Multiple Listing Services nationwide, has filed a brief supporting the settlement reached between the parties in the lawsuit against MLS Property Information Network (MLS PIN). While this is not the settlement announced last week by the National Association of REALTORS® (NAR), it involves one of the several lawsuits tied to the NAR settlement.
CMLS filed their brief in response to the one filed by the Department of Justice (DOJ) in February, which opposed the MLS PIN settlement, arguing that it did not go far enough to change existing practices to lower commissions and increase competition. In their brief, CMLS points to data showing that a similar rule change adopted by the Northwest Multiple Listing Service (NWMLS) in 2019 saved homebuyers an average of $1,000 per transaction by reducing buyer agent commissions.
The DOJ has opposed the MLS PIN settlement, asserting that it would not meaningfully benefit consumers. CMLS contends that the DOJ’s analysis is flawed and that its preferred solution – an outright ban on buyer agent compensation – could disrupt the real estate market and harm consumers.
It is doubtful that the judge will make a ruling in the MLS PIN case while the NAR settlement is pending. However, the briefs filed by the DOJ and CMLS in the MLS PIN lawsuit may have an impact on the decision regarding the NAR settlement.
One of the issues receiving significant attention following the announcement of the REALTOR® commission suit settlement is the topic of buyer commissions, specifically regarding whether a buyer has to pay them and how lenders will treat the commissions.
In a recent letter to the Federal Housing Finance Agency (FHFA), Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac, NAR and MBA sought confirmation on the treatment of buyer agent commissions following a proposed settlement agreement in the Burnett et al and Moehrl et al cases.
What does this mean for homebuyers? Under the settlement, cooperative commissions will no longer be displayed on Multiple Listing Services (MLS), but listing brokers and sellers will still be able to offer compensation for buyer broker services through other means. Additionally, the settlement does not prohibit home sellers from paying buyer agent commissions directly.
NAR and MBA believe that FHA and Government-Sponsored Enterprise (GSE) policies should continue to exclude seller or listing agent payments of buyer agents’ commissions from Interested Party Contributions (IPCs). IPCs are concessions from the seller to the buyer for items traditionally paid by the buyer, such as loan closing costs or rate buy-downs. Maintaining this practice is essential to ensure that the flow of mortgage capital to homebuyers remains uninterrupted.
As a homeowner or potential buyer, it’s important to stay informed about these developments and how they may impact your buying or selling process. NAR and MBA have requested confirmation from the FHFA, FHA, Fannie Mae, and Freddie Mac as soon as possible to prevent any confusion and potential disruptions that may cost you money or even jeopardize your home purchase.
Previously, I wrote about the settlement reached by the National Association of Realtors (NAR) aiming to resolve litigation concerning alleged anticompetitive practices, potentially leading to financial compensation for certain home sellers in St. Louis and beyond. This litigation, which centers on claims of inflated commission rates, could see a transformative resolution pending court approval expected by summer. If approved by the court, this settlement, alongside those reached with other corporate defendants like RE/MAX, Keller Williams, Realogy, and Compass, would provide eligible home sellers a pathway to claim financial redress for the commissions paid during the specified periods.
Eligibility Criteria and Key Details:
Moehrl v. NAR Eligibility:
Sold a home between March 6, 2015, and December 31, 2020.
Utilized a real estate agent or broker affiliated with specific defendants, including Keller Williams, RE/MAX, and Anywhere Real Estate, among others.
Paid a commission for the sale listed on a covered Multiple Listing Service (MLS) in certain areas.
Filing Deadline: The deadline to submit a claim is May 9, 2025.
Burnett et al. v. NAR Eligibility:
Sold a home within the eligible date range specified in the Long Form Notices.
Listed the sold home on an MLS in any part of the United States.
Paid a commission to any real estate brokerage in connection with the sale.
Not restricted to homes sold using agents from Anywhere, RE/MAX, or Keller Williams.
Filing Deadline: The deadline to submit a claim is May 9, 2025.
Next Steps for Eligible Home Sellers:
Verify Eligibility: Sellers should review the detailed eligibility criteria on the settlement websites to determine if their home sale qualifies.
Submit a Claim: To be considered for a payment, eligible sellers must file a claim by the May 9, 2025 deadline. Claim forms are accessible by clicking the links below:
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