Dear Team,
As we navigate the ever-evolving landscape of the real estate industry, I'm reaching out to share an update that underscores a pivotal moment for us all. The National Association of Realtors (NAR) has announced a proposed settlement in response to the recent litigation over broker commissions. This decision marks a significant step towards addressing industry concerns and charting a course for future growth and stability.
Here are the crucial details of the settlement:
Comprehensive Resolution: The settlement aims to resolve claims for over a million NAR members, including associations, MLSs, and brokerages, setting a new precedent for how we operate and engage with consumers.
Liability Release: It offers a broad release from liability for NAR members, ensuring a more secure and predictable environment for us to serve our clients.
Rule Changes:
The Buyer Broker Commission will move off of the MLS. Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with a REALTOR.
The types of compensation available for buyer brokers would continue to take multiple forms, depending on broker-consumer negotiations, including but not limited to:
Fixed-fee commission paid directly by consumers
Concession from the seller
Portion of the listing broker’s compensation
Buyer Broker Agreements will be required. While NAR has been advocating for the use of written agreements for years, in this settlement they have agreed to require MLS participants working with buyers to enter into written representation agreements with their buyers.
WHEN: The agreement states the new rules will go into effect in mid-July 2024.
What do I do now: If you haven't yet embraced the Buyer Broker Agreement, now is the perfect time to start. We're committed to offering ongoing training and sharing best practices to ensure you're fully equipped to confidently articulate your value to your clients and effectively negotiate your compensation. Together, we'll navigate these changes, enhancing the services we provide and reinforcing our commitment to excellence in every interaction. Let's leverage this opportunity to strengthen our skills and continue leading in our industry.
This moment is more than just a legal resolution; it's a call to action for us to lead with innovation, integrity, and a commitment to excellence. As your leader, I assure you that we will stay ahead of these developments, equipping ourselves with the knowledge and tools necessary to thrive in this new landscape.
Our Commitment to You!
Proactive Training and Education: We will provide timely updates, resources, and training sessions to ensure you aren fully prepared to navigate these changes successfully. We expect to see changes in forms and rules that will give greater clarity on the pathway forward.
Open Dialogue: Your insights and experiences are invaluable. I encourage you to share your thoughts and questions as we move forward, ensuring we all have a voice in shaping our path ahead.
Unwavering Support: Our leadership is committed to supporting you every step of the way, ensuring we continue to deliver unmatched service to our clients while embracing these new practices.
The road ahead is filled with opportunities for growth, learning, and excellence. Let's approach this next chapter with optimism, resilience, and a shared vision for success. Together, we are not just adapting; we are setting the standard, Elevating the Experience and Simplifying the next move!
Thank you for your continued dedication, hard work, and commitment to excellence. Here's to our next great chapter, together.
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