Prudent.
T3 Sixty will not publish 2024 rankings of brokerages
Looks like non “association owned” MLS orgs are still on the hook
Still running through the docs. One reader tipped me off to this nugget; Check out #8 of NAR FAQ on the settlement:
“8. How does the settlement affect MLSs?
• The agreement would release association-owned MLSs from liability for the types of claims brought in these cases on behalf of home sellers related to broker commissions.
• While the release excludes MLSs that are not wholly owned by REALTOR® associations, the agreement provides a mechanism for those MLSs to obtain releases efficiently if they choose to use it…”
nar-qanda-competiton-2024-03-15
Shades of CIVIX?
NAR settles….
Powerful Realtor Group Agrees to Slash Commissions to Settle Lawsuits
“The settlement includes many significant rule changes. It bans N.A.R. from establishing any sort of rules that would allow a seller’s agent to set compensation for a buyer’s agent, a practice that critics say has long led to “steering,” in which buyers’ agents direct their clients to pricier homes in a bid to collect a bigger commission check.
And on the online databases used to buy and sell homes, the M.L.S., the settlement requires that any fields displaying broker compensation be eliminated entirely. It also places a blanket ban on the longtime requirement that agents subscribe to multiple listing services in the first place in order to offer or accept compensation for their work.”
Debra Kamin, New York Times
Story is developing. I’ll try and get more details.
Industry Relations Podcast: DOJ Drops Statement of Interest in the Nosalek Case
What impact will the Department of Justice’s stance on the MLS settlement have on the future of buying and selling houses? In this important episode of “Industry Relations,” Rob and Greg talk about a big message from the Department of Justice (DOJ) about the MLS PIN settlement. The DOJ seems to want the court to say no to the settlement. Selling agents might not make as much money as before, and buyers agents might need to show why they’re worth their commission more than ever. It’s time to start thinking about how we can prepare for change and innovate new approaches in serving buyers and seller.
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This podcast is produced by Two Brothers Creative 2024.
DOJ urges industry to make a clean cut. Wants Buyers to negotiate compensation directly with their agent.
0290.-02-15-2024-AMICUS-BRIEF-filed-by-UNITED-STATES-OF-AMERICA-Statement-of-Interest-of-the-United-StatesDownload
Well we were all speculating whether or not the DOJ would give any clear direction on how they picture compensation to be handled thru the MLS. The DOJ did, and it’s a whooper. Basically they don’t think reducing offers of compensation down to zero matter at all. They want the industry to make a full break from seller setting the buyers agent commission at all. And site “steering” as a concern. So, more like a commercial model. This is something listeners of Industry Relations have heard Rob Hahn echo since the beginning, that steering was the main issue.
In a huge surprise this “Statement of Interest” references the Industry Relations podcast and Rob, myself and Ed Zorn directly,
“Rob Hahn & Greg Robertson interviewing Ed Zorn (VP & General Counsel atCalifornia Regional MLS), Burnett v. NAR: The Lawsuit That Could Upend the Housing Market, Industry Relations (Oct. 18, 2023), starting at 43:40, www.youtube.com/watch?v=pw39NB3w_0o&t=11s (“You do realize under this system (of the seller paying the buyer’s agent directly inside the contract) you do realize a closing statement at a title company or an escrow company looks 100% identical as it does today. With both commissions on the seller side. Nothing changes. The only thing that changes is the number that shows up for the buyer’s agent in that closing statement was negotiated between the buyer directly and the buyer’s agent and had nothing to do with the seller or the listing agent. That’s the one thing that’s different.”
STATEMENT OF INTEREST OF THE UNITED STATES, Department of Justice (DOJ)
I’m not sure whether to be honored or scared shitless that the DOJ listens to our podcast!
For clarity I’ve embedded the YouTube video so that you can see what the DOJ was referencing on our podcast, I started it a bit earlier so you can get some context ( I also think this is good primer to understand what the DOJ is asking for.)
Rob and I record our Industry Relations podcast today at 10AM. Should be a good.
DOJ objects to MLS PIN settlement, again.
DOJ objects to 2nd settlement bid in MLS PIN commission case
“In a Dec. 18 letter, DOJ attorney Jessica Leal informed Judge Patti Saris of the U.S. District Court in Massachusetts that the agency had conferred with lawyers for the plaintiffs and MLS Property Information Network (MLS PIN) to attempt to address concerns that the deal’s proposed commission rule changes may not go far enough, but wasn’t satisfied with the latest version of the deal.”
Andrea Brambila, Inman News
FFS, just tell us what you want.
Batton down the hatches
Mother of all commission suits filed in Illinois, this time by homebuyers
“The scope of Batton 2 is exponentially larger than Gibson, Sitzer | Burnett, or another, similar case, Moehrl. Both Batton 1 (formerly, Leeder) and Batton 2 seek class certification on behalf of two proposed classes:
Andrea Brambila via Inman News
- a “Nationwide Class” made up of “All persons who, since December 1, 1996 through the present, purchased in the United States residential real estate that was listed on an NAR MLS.” For this class, the plaintiffs are asking for injunctive relief, meaning either a court-ordered prohibition or a requirement on the defendants’ behavior.
- a “Damages Class” made up of “All persons who, since December 1, 1996 through the present, purchased in the Indirect Purchaser States residential real estate that was listed on an NAR MLS.” For this class, the plaintiffs are asking for damages under “antitrust, unfair competition, consumer protection, and unjust enrichment laws.”
This is why I drink.
