The US Department of Justice (DOJ) filed a Statement of Interest on Sunday ahead of this week’s final hearing of the National Association of Realtors’ (NAR) $418 million settlement of the Sitzer/Burnett case.
Real Estate News reported the DOJ’s statement informed the U.S. District Court’s Western District of Missouri that while the department did not have an official opinion on the settlement, it wanted to affirm that the settlement would not prevent future enforcement actions against NAR regarding antitrust violations.
In its filing, the DOJ declared the settlement “does not address whether the proposed settlement prevents and restrains current antitrust violations, remedies past violations, or contains revised policies and practices that comply with the antitrust laws.” However, the DOJ stated that the settlement’s provision requiring written agreements between buyers and brokers prior to home tours “may harm buyers and limit how brokers compete for clients.”
“It bears a close resemblance to prior restrictions among competitors that courts have found to violate the antitrust laws in other proceedings and could limit – rather than enhance – competition for buyers among buyer brokers.” The DOJ recommended that the court either drop the provision or declare the settlement will not create a defense immunity under antitrust laws.
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JUST UNBELIEVABLE- the DOJ needs to stay out of this……………..
So true!
The NEW DOJ needs to nullify this.
The new DOJ absolutely needs to nullify this. I have been in this industry for more than 30 years and have always offered negotiation to both sellers (listing clients) and Buyers. The DOJ did not participate in this case publicly. Can’t wait for the new DOJ!
Does the DOJ have nothing better to do? Aren’t there like real criminals out there? Somewhere?
Or we just need to get rid of NAR. It is like a union closed shop where you have no choice, if it had such great benefits and products you would want to join.
Getting rid of NAR is exactly what the DOJ is trying to accomplish. They are doing the bidding of Big Tech and working to disrupt the real estate industry by sewing seeds of discontent with NAR. Big Tech has spent BILLIONS of dollars trying to disrupt the industy with little success. NAR and it’s advocacy for homeowners and the industry is the primary reason they have been unsuccessful. They have realized the only way they will disrupt is by getting rid of or severely diminishing the influence of NAR. Do you really think the courts and the DOJ are looking out for the best interests of consumers? Look at the mess they have created. Consumers are not better off now than they were before the DOJ and courts got involved. Follow the money. The DOJ is in the pocket of Big Tech.
As much as NAR irritates me, your analysis makes sense.
YES!
Drop out now.
So, I am confused. I thought it was the DOJ that wanted the buyer agreements requirement yet they are calling them a potential problem for competition?
The NAR has totally failed its membership. It caved in to a BAD agreement and claimed that it admitted “no fault”. If this was the case, it should have fought the DOJ all the way to the Supreme Court to keep the DOJ in its lane.
If the DOJ is reopening this, the NAR needs to engage and fight the main points to the Supreme Court to establish precedents that the DOJ can’t do these type of “end arounds” against.
I am so disappointed with the leadership, vision and foresight of the NAR. I was taught that if you believe you are correct in your beliefs, you FIGHT to uphold those beliefs. Instead, the NAR caved in like a stack of cheap cards and we are still paying that price.
The Left hand not knowing what anyone is doing.
They jam up the first time and low income buyer to work with whomever they call for help, just as interest rates rise. They force agents who have never forced a buyer to work with them to a 3 to 5 page agreement.
NAR attorneys are weak and ineffective and will sit back and collect millions while agents and brokers will be hammered with additional fees in 2 years when the moratorium expires.
Add Rump and his tariff proposals to the mix and only millionaires will get a break in this country.
Again, a Government agency overstepping. Who really benefitted from the settlement anyway? Buyers? Nope. Sellers? Nope. Attorneys? Yep.
One of the good things in real estate was that you could meet someone WITHOUT shoving a document to sign in their face. The fact that everyone has to do it makes it easier to discuss, but still not a good thing. This is a hidebound industry but its changes tend to make a hard job harder and commissions ARE falling. The changes favor the aggressive and verbose. Ever since the MLS, already irritating due to their random rules, sold our information the old paradigm was toast. Not sure proprietary was good, but all the review-chasing, redirection of leads, etc. puts one in self protective mode when it should be all about the client.
Anything that will stop this ridiculous Buyer/Broker agreement is wonderful and I’ll support it! It’s like saying, “so you want to shop in my grocery store? Well, you have to sign this agreement first or you can’t go in” It’s just crazy!!
Since none of the NAR members were consulted, or got a chance to vote on the ridiculous settlement, the issues the DOJ are presenting our obvious. this hurts Buyers and their agents and doesn’t benefit anyone, other than perhaps listing agents. I don’t see doctors, lawyers, CPAs, or any other professionals being restrained like this one profession, and again it had no vote and no authorization from the members!
It should have never gone to court. The woman that started it all, her realtor friend she listed with wasn’t even a part of the suit. It was a money grab by all parties especially the lawyers.
Yes, the only winners, in my opinion, are the lawyers.
Unfortunately this – our industry was the only capitalistic enterprise , the government and its political arena could no longer entertain the fact that the American Dream of home ownership was still achievable. Hence all the new construction of apartments. Control ,control the investors would become rich keeping the consumer unable to purchase , even though rents would be adjusted and moonlight as mortgage payments . There is no benefit to our agents , being held to a higher standard has become artful manipulation in more ways than one !!!!!!!
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This is exactly why I ended my NAR membership decades ago. I learned about ethics at home from my parents and in Sunday School when I was a child. I don’t need an organization to teach me, especially like the NAR! they have a long sellout history.
THANK YOU “CR” for the reminder… I learned about ethics at home from my parents and in Sunday School as a CHILD. I don’t need an organization to teach me!
I LOVE this comment —– TRUTH RESONATES when you hear (or read it) and your statement resonates with me
If the DOJ is saying that this is hurting buyers and Realtors aren’t they on our side? They are saying get rid of the agreement, that is what we need. How are they on the side of Big Tech? I agree NAR caved and their head honchos are living high on the hog as well as the attorneys that brought this lawsuit but it seems the DOJ is trying to make it easier for buyers and Realtors by getting rid of that aspect of it. NAR should be looked into from the aspect of how it benefits Realtors and what we are getting from our dues other than luxurious houses, cars and vacations for the management and their families. If DOJ wants to get rid of the commission agreement I am all for it; way too confusing for everyone.
I agree with the posted comments, I have ask my local association for a refund for 23 years of dues and this is what we get. common sense went right out the window. very sad,by the way I did not get a refund or a reply