Major Realty Changes to Follow NAR Lawsuit
HOUSTON – (Realty News Report) -The way homes are bought and sold and the commission compensation practices for Realtors will change significantly.
The evolution comes as a result of a settlement of a major lawsuit against the National Association of Realtors, the latest chapter of a blitz of suits regarding commissions paid to realty agents and related issues..
Under the terms of the agreement announced Friday, NAR will pay $418 million over four years.
“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers. It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals,” said Nykia Wright, Interim CEO of NAR, which has about 1.5 million members.
The agreement will lead to new practices that will be implemented this summer.
The new rules include informing buyer’s agents how much they will be paid for bringing the buyer to the deal. The NAR has agreed not to place buyers agent compensation with the listing information on the MLS.
The new system is expected to lead to lower commission rates and more negotiations with Realtors about