The $418 million settlement by the National Association of Realtors (NAR) of the Sitzer/Burnett case received its final approval in federal court.
The New York Times reported Judge Stephen R. Bough of the Western District of Missouri gave his final sign-off on the settlement, which NAR agreed to on March 15. Today’s final approval was a legal formality, as Judge Bough gave his preliminary approval to the agreement on April 23 and the trade group enacted the settlement’s call for rule changes regarding commissions on Aug. 17.
“This is an important moment for NAR members, home buyers and sellers, and the real estate industry,” said NAR President Kevin Sears, broker-associate of Sears Real Estate/Lamacchia Realty in Springfield, Massachusetts. “As consumer champions, NAR’s members have been working tirelessly to implement the practice changes required by the settlement and shepherd consumers through this period of transition. The principles of transparency, competition and choice are core to the settlement agreement and empower real estate professionals and consumers to negotiate the services and compensation that work for them.”
On Sunday, the U.S. Department of Justice issued a Statement of Interest on the settlement, declaring that it “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.”
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So the problem is that none of the members of the NAR, the actual real estate agents, realtors, had any input or got to vote on even doing this ridiculously bad settlement! This hurts buyers. This hurts their agents, and it doesn’t accomplish anything, other than perhaps in which a few listing agents. The members of NER feel totally slighted and upset, and are questioning, remaining in this organization of questionable nature.
No one is keeping you here. Go on and go it alone. When the next round of lawsuits come at you there will be no protection without being a member of NAR. If everyone quit the organization there would be no advocates for anything—flood insurance; tax breaks for selling your primary residence, fair housing, etc. If NAR goes away you will be working for a corporate entity selling real estate at an hourly wage—working like a dog for 1/10th of whatever you are making now. When you don’t produce your quota you’ll be fired. It’ll be a little late at that point to realize that “hey…we kinds need NAR to advocate for us”.
Do you work there? This is always been about the protecting themselves. When they sold our data to realtor.com and Zillow it was the beginning of the end. They sold us out a long time ago.
100%
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Who in there wright mind would go to work not knowing what they are getting paid? When you sell a property you do NOT KNOW what you are getting paid? And a lot are not posting the commission in the close and some due showing a $ 1.00 commission!!! CRAZY!!!
I’ve been a REALTOR in my office for 24 yrs….it has become so confusing for buyers/sellers on the paperwork required that I’m not going to stay much longer, many of us are a wealth of infirmation and have always disclosed to our clients all necessary information but these requirements and forms are beyond anything helpful to a buyer or seller and make it unnecessarily confusing….
I retired in 2023 and I’m so glad I did. I loved my clients, both buyers and sellers, and the houses were always interesting. I miss the camaraderie, but I’m so glad to be out of the industry. The MLS was like sliced bread. Someone has to pay the commission!
NAR a worthless parasite. they’re just a drain on our pocketbook and should be disbanded. I have absolutely no use for them anymore… actually I’ve hadn’t had any use for him from the start. they proved once and for all they’re not looking out for the agents that support their lavish lifestyles in the executive department of NAR.
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You got that wright!!!
Are you not aware of the fact that without NAR there is absolutely no guidance of discipline to how we conduct ourselves in real estate on a daily basis? There are no laws for how we show properties present offers procedures in negotiating etc etc
I have been licensed for 25 years and know that NAR sold us out years ago when they let Realtor.com in our MLS system. Nothing has been the same since then. I am semi retired and love it as I am only working with family and friends. That is basically because of NAR and their changes. NAR is worthless and I wish my broker did not require membership with them but he does and that is the only reason I am a member.
Why is it that this was supposed to be appealed and gone to the Supreme Court. This is all because of two states and a few agents decided to make a mess out of this and in turn the 48 other states that did nothing wrong are being punished. The board of realtors is now automatically implementing fines on listing agents instead of siding the job that are being paid to do, to protect r us agents and advise us along with allowing us to correct er the issue. If you try to opt out of paying the fees to NAR you are not allowed. We should boycott them and tell them to fix it or we will all stop paying our dues.
AMEN!!!
Yes!! Almost $800.00 is the amount of the dues.
I’ve been a Realtor for 42 years. I’m done. I don’t need it to
practice.
Our Dallas Ft Worth MLS and also Phoenix AZ is allowing you to opt out of NAR and Texas Assoc of Realtors. Complain to your local MLS, thats what we did and they will change for you as they know they are losing a LOT of Members !!
The settlement hurts both buyers and sellers, not all buyers have the cash to make down payments, the lender’s high closing costs, the pre-payments required and now possibly paying a buyer’s agent commission because sellers are getting the message wrong from the media. It wasn’t about sellers not having options, the plaintiffs could have been FSBO’s or negotiated with competing Realtors for services or commissions. Now agents have to talk about commissions on 1st meetings with buyers before they even get a chance to show their worth. At least 1 part of the agreement that has been a pain for the past 3 months has been brought back and that’s seeing commissions posted again, no more blind conversations with buyers. CompensationQuest.com is building their database across the Country, it’s a membership for real estate professionals, it’s easy to use, quick, legal, only $4.99 a month and the first 3 months are free. The reason why commissions were taken down from MLS’s was because they were mandated to put them on by NAR or the MLS. CQ is a membership, an agent can join or not join, an agent can post commissions or not, it’s not mandated. Just an FYI
Yes – I agree they did sell us out… to Zillow – Homes.Com and All The Rest … but some of the result has been actually helpful to the industry in the long haul, at least for those that were able to keep up with the changes.
Other platforms by be helpful to sharing more info, but comes at a price of risk of the same exposures. They need to be on how the commissions are handled, After-all the federal law is not going away.. they may modify at some points… but be clear on disclosures, especially the commissions.
If you have Sellers that you want to Share more Commission Details, with clarity, you can display at SellMyFISBO.com and soon, our Sister Site BuyMyFISBO.com
Agents can Claim and Secure Their Protected Territory Call 239-281-HOME ask for the details!
“Judge Stephen R. Bough of the Western District of Missouri gave his final sign-off on the settlement…”
Judge Bough is an Obama appointed Judge, and supported by then Sen.Harry Reid.
Know thy enemy—
Ah. That explains it.
Got the last time – the worst settlement in the history of real estate -the l p siding verdict is now in second place
NAR dropped the ball. They didn’t take the suit serious. And we are paying for it
In a clever move, the NAR has structured the payment of the $418 Million over approximately four years, so if everybody quits (and the NAR cannot pay), then the settlement will be void and we all have liability. Mark your calendars for December of 2028, and let’s all bail out of NAR (an incompetent and greedy trade group).
THEY SOLD US OUT TO ZILLOW YEARS AGO. They have always been about themselves
The NAR ought to go back to the way it was for many, many years. The buyer brokers (agents) were sub-agents of the listing agent (selling agent). The selling agent would spit the commission 50/50 with the buyer broker. Usually 3% to each agent. It was less confusing and it worked.
Those were the good old days. All changed by a previous class action suit. The interpretation of agency was completely revised.
Ridiculous. This only hurts the economy more. If real estate is in a dire position then builders, building materials etc will be affected as well aa other products. It is affecting our mortgage industry as well.
NAR just needs to go away. For those who ask who will protect us if NAR goes away.. We wouldn’t be here if it weren’t for NAR. NAR should detach from all of the MLS systems. Right now every small town market can have it’s own board and MLS subs… It’s truly a business model that should have never been one. 1 MLS per state. Subscribe to it or not. NAR subscribe to it or not.. Don’t force us to pay dues for something we don’t want.
I agree that NAR sold out to Zillow. In fact, Zillow may be easier to find properties than through you local MLS. This is because outside MLS’ that list properties in your area you can’t find, unless the buyer shows it to you or you look on Zillow. The comment about, “1 MLS per state” is a viable one. Still, amidst the frustration, it’s pretty much business as usual. Brokers have to do a little more explaining to both buyers and sellers. However, if the seller’s agency is a cooperating agency then it’s still, pretty much, business as usual. Sellers seldom ever paid buyers commission. Listing firms got their percentage and then shared that if another firm brought a buyer. Otherwise, the sellers firm kept the full commission. I don’t agree with the settlement, but the verdict has been rendered. Adapt and move forward.
After 54 years in the real estate business, “Stupidity.” has
taken over!
The DOJ thought we agents were making too much money but I wonder how much money the attorney who brought the initial lawsuit before the DOJ made in the settlement. How much of that settlement did his clients get? Just wondering!
Strongly support the NAR now more than ever – understand what the settlement was and what was behind it. Realtor’s built the MLS system, ethics, and fair housing protocols. Now large entities look to usurp these things and be the one stop shop where they are the buyer, seller, mortgage, property manager – in preference to tenants. The incoming DOJ may reverse all this silliness – as it is paved with anti-trust monopoly efforts. Happy Thanksgiving and God bless.