The National Association of Realtors (NAR) recently proposed a settlement to satisfy the group of Missouri homesellers’ grievances. While the settlement is just a proposal at this moment, NAR claims it is hopeful that the proposal will settle most issues that have surfaced in the 6 year lawsuit. The proposed settlement outlines 2 key goals. As stated by NAR, the goals are such:
“1. Resolves claims against NAR and nearly every member; all state, territorial and local REALTOR associations; all association-owned MLSs; and all brokerages with an NAR member as principal whose residential transaction volume in 2022 was $2 billion or below.”
“2. Preserved cooperative compensation as an option for consumers looking to buy or sell a home - as long as such offers of compensation occur off of the MLS.”
Filers of the original complaint were outspoken in the fact that offers of cooperative compensation on the MLS create a situation in which fees are implied as mandatory and unable to be negotiated. While real estate agents and real estate savvy individuals know that the MLS does not set commissions, it is a common misconception that commissions are non negotiable. NAR does not set commission rates for agents or brokers, and commission rates can always be negotiated. NAR also agreed to make changes to buyer agency contracts in an effort to make sure the consumer is well informed.
If the settlement filed by NAR is accepted, changes could go into effect in mid-July. There is not currently a set date for any concrete changes but our brokerage continues to stay abreast of the latest developments from NAR.
Our goal as brokerage is always to support and serve our clients; we will continue to stay informed and educate our clients about any pertinent information that may change the real estate process for them.
If you have any questions or concerns about the developing settlement and the changes it may set into effect, any of our licensed real estate agents will be happy to talk with you!
Written by Lydia Glenn, Agresti Real Estate Transaction & Lead Specialist
Sources and further reading on the subject:
https://www.nytimes.com/2024/04/23/realestate/nar-settlement-realtors-commission.html