Real Estate

The NAR commission settlement rules will go into effect in August.

The major trade organization promised to make various policy changes as part of a landmark settlement in March. The rules will now come into force later than expected.

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The National Association of Realtors on Friday outlined various policy changes that will result from its historic Commission lawsuit settlement, revealing that the changes will take effect in August.

NAR broke down all the policy changes. The 57-page document is posted on its website.. Importantly, the document begins with an executive summary indicating that the changes were “approved by the NAR leadership team and will be effective August 17.”

The August date may surprise some observers. After NAR agreed in March to settle various lawsuits with a commission led by home sellers, the policy changes the organization had promised were expected to go into effect in July.

The new date pushes back the deadline. This is also the first date that a class notice can be issued after the initial approval of the settlement, which happened on April 24. A hearing to finalize the settlement is currently scheduled for November.

The new NAR document also outlines specific policy changes that will be implemented. Among other things, those changes prohibit listing agents from offering compensation to buyers’ agents in the MLS. The document further stated that MLSs would also have to eliminate fields in their technology platforms where such offers were made, and said that MLSs would also have to use other methods to make such offers to their members. Cannot create mechanisms.

The document further explains that the new rules “prohibit the use of MLS data or data feeds by multiple brokers or other buyer representatives to directly or indirectly establish or maintain a platform for compensation offers.” ” Such a rule presumably means that a consumer-facing portal, for example, cannot step into and fulfill the role of MLSs by displaying buyer agent compensation offers from sellers or their brokers. can’t By doing so, “MLS will terminate Participant’s access to any MLS data and data feeds,” the document added.

The document also defines the word “cooperation” as it relates to MLS participation, notes that compensation disclosures will be required between consumers and their agents, and reiterates that buyers You will need to sign contracts with your agents before visiting homes.

While various policy changes stemming from the settlement were already announced and clarified, the new document specifically shows how and where NAR’s governing language has been updated to reflect the changes. Because the document is lengthy, Inman will continue to analyze it and report on additional details in the coming days.

In the meantime, some uncertainty remains. While NAR has expressed confidence in its settlement — which will see it pay $418 million — the U.S. Department of Justice has also indicated it wants to see even bigger changes. The DOJ acts as something of a wild card as a result right now, which could mean different or even bigger policy changes.

Email Jim Dalrymple II.

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