The US Supreme Court has declined without comment to consider an appeal by the National Association of Realtors (NAR) to stop the US Department of Justice (DOJ) from reopening an investigation into NAR’s Participation Rule and Clear Cooperation Policy that was resolved in a December 2020 settlement.
Last April, the US Circuit Court of Appeals ruled the DOJ could reopen its investigation NAR, reversing a January 2023 appeals court decision that said the terms of the earlier settlement were still valid and allowing the investigation to resume would take away the benefits NAR had negotiated in the original settlement.
In a filing before the Supreme Court last month, the DOJ argued, “The disputed question is whether, in addition to agreeing to close the investigation, the division agreed not to reopen it. As the court explained, no such commitment appears in ‘the plain language’ of the parties’ agreement … Although the division agreed to close its investigation, the words ‘close’ and ‘reopen’ are not mutually exclusive.”
As a result of the Supreme Court’s action, last April’s appeals court ruling will stand. However, it is unclear if the incoming Trump administration will drop the DOJ’s case against NAR – neither the President-elect Trump nor his choice for Attorney General, Pam Bondi, have publicly commented on the issue.
Such BS. Lawyers making more money on our backs.
This is only making it harder on buyer’s. Never met a FSBO who discounted his home because he FSBO’ed it.
I believe the doj will find that forcing buyers to sign a contract to only work with one agent is not in the interest of the buyer (consumer) and buyer agent contracts will not be allowed. Duh
NAR “Settlement” was made with no Member discussion, input or VOTE BY IT’s MEMBERS! It does NOT represent Members and should be shut down for good, replacement by a Clean Sheet entity voted by Real Estate Agents. No lawyer or accountant is limited to a 90 day contract or restrictions that the farce of the Settlement forced upon licensed, working real estate agents! Buyers are suffering, Buyer’s Agents are hurt, never forget what President Reagan said to be concerned with the most terrible 7 words: “We from the government here to help you!”
Brian Doc Burry, yours is the best REPLY and Reagan’s words are the ones that most APPLY. Great input, really. Thank you 🙏
I like the old days where a handshake was enough; where trust was “earned” not demanded; where things were out in the open, not “oh my gosh, hide that commission!”–why? Who knows.
So not only did NAR negotiate a settlement I never agreed to, but they did such a bad job with it, they’ve left the door open for the DOJ to reopen the investigation because the wording wasn’t adequate? Maybe NAR members should sue NAR and NAR’s attorney’s for negligent incompetence.
Very good point. This is unbelievable.
Absolutely. After all, we pay premium dues for the “R”
“and code of ethics”, but one lawsuit just broke the whole nation of realtors?? are we the E&O for that…Check-please…
I have had a license since 1989 and I never work less that 100 hours per week, including evenings, weekends, and holidays. I have NEVER had a week off. I started before cell phones, fax machines, or the internet. We were all working for the Seller because he was the one paying our commission. Then, someone figured out that he was paying us with the Buyer’s money, right? There is no closing without the Buyer’s money. So then, they had a massive big deal about Buyer representation. So, they set it up the way Attorneys operate, and the polarization began! Now we have all these “Attorney wanna-be’s.” They start a conversation with, “Well, MY Client….” Folks, it did not used to be like this. We were all on the same team working to put something together with the least strife. We all got along well and got a lot done. It seems like there is so much strife now, deals fail often and are way more litigious. As far as our fees go, Lenders still get 3% and get to sit in a temperature controlled office all day. Nobody questions their fees and I have only seen 1 Loan Officer cut her rate to make a deal work in my 35 years. Also, MANY ATTORNEYS WORK ON 50% OR MORE. NOBODY QUESTIONS THEIR FEES EITHER! If we are going to talk about Anti-Trust, it seems that Attorneys have covered themselves very well!!!! Call me old fashioned, but we all need to work together more as friends and colleagues, and quit giving attorneys all the power to make these decisions for us. It would be great if Brokers and Agents had some input, instead of the attorneys who supposedly “represent” us. Can we get in touch with any of them, or are they “untouchable” like our elected officials?
I’ve been licensed since 1986 and totally agree and understand your view points.
totally agree and well put.
Why do we need the NAR in today’s world? We can find ways to work together as we do now. They sold the mls on us. They are not our friend
I would agree with this for certain. Only the fact that they sold the MLS means they lost relevance to me. I work in an area with too many small MLS associations that do not cooperate. So instead of an electronic SUPRA key, I always use a combination lock. I can give access to anyone who calls for an appointment. No one goes in without talking to me. And I can access others listings because they also know agents show and sell across the boundary lines in this area. With Zillow, and others, I can see everything listed in any MLS instead of being restricted to my own membership. So tell me, why do I need MLS membership now? I am still a member, but question why their dues are so high? Why do they not cooperate across associations? Why do they sell my contact info to anyone who wants to target market to us? Why? If enough of us exit, then what?
Maybe I am missing something, but there seems to be some incomptence bordering on malpractice on the part of NAR’s lawyers if they did bullet-proof the agreement to pay millions of dollars in such fashion that the case is done and dusted forever without any possibility of “re-opening”. Elementary, my dear Watsons…
Meant to write “did NOT bullet-proof”..*
Here in TX so far not an issue on higher end homes cuz sellers are desperate to sell & (still) willing to pay 6%, (3% to the buyers agent). But it sure has complicated the paperwork, inserting new language, eliminating/introducing new addendums when most agents can barely fill out a contract properly or articulate an email message. Sellers dont give a ratz azz they just need to sell & buyers are like WTF? Im not paying for sh!t. Not good.
In my opinion, NAR is like a bunch of fat bureaucrats wallowing in our money with no concern for the man and woman in the field. Cronyism using lawyers not up to the task of fending off weak case brought by DOJ, where (with all our money) are the big time name brand federal system lawyers. Certainly don’t want same lawyers who lost so much on our behalf to remain on the “reopening” of the case. It’s a chance to turn around what happened in round one, but only with legal representation up to the challenge.