March 2024 Department of Justice Ruling

Critical Key Takeaways from the March 2024 Department of Justice Ruling

If you’re not familiar with the recent Department of Justice ruling, please take some time to educate yourself on the potentially sweeping changes that may take place across the real estate industry. So, so important whether you are in the market to buy or sell today or tomorrow. Become an informed consumer.

Here's the skinny in layman terms ...

Background

A group of home sellers in several states filed a legal complaint against the National Association of REALTORS® (NAR) and two other firms about the following:

1. Real Estate commissions are too high

2. Buyer Brokers’ are being compensated too much

3. Practice of tying commissions paid to Buyer Brokers set by the Listing Broker

Summary: The complaints center on alleged anticompetitive practices.

What Happened

1. In March 2024, NAR proposed a settlement with the Department of Justice to pay damages on the alleged complaint

2. The settlement (if it stands) will prohibit Listing Brokers from listing Buyer Broker compensation rates on the Multiple Listing Service (MLS) listing

3. The settlement (if it stands) will require Buyer Brokers (Agents) to have written contracts in place with their clients before engaging in any actions associated with purchasing a home

What does this mean to you as Buyers and Sellers if the ruling stands?

1. Buyers

   • will need to have a written contract with their Buyer Brokers (Agents)

   • will have an additional outlay of costs for purchasing homes, which will be to compensate their Buyer Broker in accordance with their written contract, unless the seller agrees to pay the Buyer Broker commission fees as a negotiable term of the real estate transaction.

2. Sellers may negotiate to compensate the Buyer Brokers (Agents) as a negotiable term of the real estate transaction.

   **** IMPORTANT ****

All the info stated above is subject to change as the DOJ/NAR settlement is still under discussion.

Moving forward … Given these potential changes within the real estate industry, it is even more critical to innovate with Enknovate.

We’re here to help you achieve your housing goals!