TO ALL OUR MEMBERS:
NAR has proposed a settlement in the Sitzer-Burnett lawsuit.
What this proposed settlement means is:
Release of liability: The agreement would release NAR, and over one million NAR members, all state/territorial and local Realtor associations, all MLSs wholly owned by Realtor Associations, and Brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below from liability for the types of claims brought in these cases on behalf of home sellers related to broker commissions.
- Compensation offers moved off the MLS: NAR has agreed to put in place a new rule prohibiting offers of compensation on the MLS.Offers of compensation could continue to be an option consumers can pursue off of the MLS through negotiation and consultation with real estate professionals. And Sellers can offer buyer concessions on an MLS (for example – concessions for buyer closing costs).
- Written agreements for MLS participants acting for buyers: In this settlement NAR has agreed to require MLS participants working with buyers to enter into written representation agreements with their buyers. This change will go into effect in mid-July 2024.
- NAR agreed to pay $418 M over approximately 4 years. NAR member dues will not change.
- NAR has long maintained – and continues to believe that cooperative compensation and NAR’s current policies are good things that benefit buyer and sellers. They promote access to property ownership, particularly for lower-and middle-income buyers who can have a difficult-enough time saving for a down payment. With this settlement, NAR is confident its members can still achieve all those goals.
WHAT TO DO GOING FORWARD
- Continue to discuss offers of compensation with the Seller and the Buyer.
- Utilize Buyer Agency Agreements & explain the NJ LAW OF AGENCY to your Sellers and Buyers. Use the CIS form. The settlement provides that MLS participants working with buyers must enter into written representation agreements (Buyer Agency) with those buyers. This change will go into effect in mid-July 2024.
- To show a listed property you will need to call the listing broker/agent to find out if there is compensation.
- Continue to stay informed by visiting NCJAR.com, NJRealtor.com and Competition.Realtor
The settlement is subject to court approval, which is a process that is expected to take several months or more and will include an opportunity for interested parties to object.
Watch the Full Video Message from NCJAR's 2024 President, Chris Coccia - https://www.youtube.com/watch?v=yQzW7IKwXpU
