The National Association of Realtors (NAR) recently reached a significant settlement related to antitrust lawsuits, agreeing to pay $418 million to resolve claims brought by home sellers. This settlement is a landmark decision that promises to reshape the real estate commission structure in the U.S.
Key Details of the Settlement:
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- Settlement Amount and Payment Structure:
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- NAR will make the payment over four years, with an initial installment of $197 million due within 90 days of the court’s final approval. Subsequent payments of $72 million will follow each year The Real Deal RealEstateNews.com.
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- Settlement Amount and Payment Structure:
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- Elimination of Compensation Offers via MLS:
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- A crucial aspect of the settlement is the removal of the requirement for listing agents to offer compensation to buyer agents through Multiple Listing Services (MLS). This change aims to increase transparency and allow buyers and sellers to negotiate commissions more freelyRealEstateNews.com The Real Deal.
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- Elimination of Compensation Offers via MLS:
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- New Rules for Buyer Agents:
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- Starting in July 2024, buyer agents will be required to use buyer agency agreements. This means that buyers must formally agree on how agents will be compensated before any transactions take place RealEstateNews.com The Real Deal.
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- New Rules for Buyer Agents:
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- Impact on Multiple Listing Services:
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- MLS platforms will need to implement significant changes within 150 days. They will no longer be able to disclose compensation offers or filter listings based on these offers. However, compensation can still be presented as a seller concession RealEstateNews.com The Real Deal.
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- Impact on Multiple Listing Services:
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- Who is Covered:
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- The settlement covers NAR, its members, and most state and local associations, as well as association-owned MLSs. However, major brokerages with residential transaction volumes exceeding $2 billion are excluded from this agreement RealEstateNews.com The Real Deal.
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- Who is Covered:
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- Exclusions from the Settlement:
- Exclusions from the Settlement:
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- HomeServices of America remains the only major defendant not included in the settlement. This company has sought to challenge the earlier verdicts related to the lawsuits The Real DealRealEstateNews.com.
This settlement marks a pivotal change in how real estate commissions are structured, aiming to provide more transparency and flexibility for consumers in the home buying and selling process. For more detailed information, you can explore articles on this topic from sources like The Real Deal and Real Estate News.