Where Real Estate Gets Its Dirt

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:

  • 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.”
Andrea Brambila via Inman News

This is why I drink.

RPR was not on my bingo card

Remember back when the industry freaked out about RPR and how it could be NAR’s play to become a national MLS? I found this article from 2009, that captures the spirt of the day.

Skeptics of RPR Database Voice Worries

“Some skeptics at the conference have even referred to the Realtors® Property Resource database (RPR), as “Reaper” — as in the Grim Reaper — fearing its potential to harm their business.

Because it will not include offers of cooperation and compensation and will only be accessible to NAR members, the database won’t function as a national MLS, NAR says. Not all are ready to take NAR’s word for it.”

RETechnology

Emphasis mine. Sure you would have to be a member of NAR but in a day and age where many people are questioning what being an “MLS” even means … who knows what could happen?

Somewhere Marty Frame is laughing his ass off.

Rob Hahn ties up a few loose ends of the #SitzerBurnett appeals process

Musings on the Appeals Bond Hearing

“Let’s say NAR has $500 million, BHHS has $100 million and KW has $50 million that can go towards collateral for a supersedeas bond. That’s $650 million, and that’s assuming all three organizations completely empty the bank account, liquidate everything that can be liquidated, and not even have operating funds. 

That is completely unrealistic. For one thing, they have to pay lawyers for the appeal. And pay staff and such in order to be a going concern.”

Rob Hahn, NOTORIOUS ROB

Must read.

Bob Goldberg out at NAR

Bob Goldberg out as NAR CEO

“The National Association of Realtors’ longtime CEO Bob Goldberg is leaving the trade association, multiple sources with knowledge of the situation have confirmed to HousingWire Thursday morning.

“We are immensely grateful for Bob’s leadership and decades-long service to NAR,” Tracy Kasper, current NAR president, said in a statement. “It has been a privilege to work with him in expanding and strengthening our organization, and we congratulate him on his well-deserved retirement. His contributions to our association and our industry have been tremendous.”

Goldberg’s departure comes just two days after a federal jury in Kansas City, Missouri, ruled that NAR, HomeServices of America and Keller Williams had colluded to artificially inflate real estate agent commission rates.

Brooklee Han at HousingWire

Damn.

NAR NXT Pre-Party!

In collaboration with Drew Meyers of Geek Estate (GEM), I will be hosting in the work/car studio I share with Dan Woolley ( and my two vintage VWs) a NAR NXT Pre-Party. We’ll set up tables, have local brews and a few handles, snacks, cool music, a bubble top hockey table and a few surprises. Register here.

Very close to John Wayne Airport (SNA) airport if you are flying in Monday. Or maybe a kicking off point for some of Orange County’s finest restaurants. I’ve included a map below to give you some idea of the location in respect to The Anaheim Hilton and JWA.

Open to GEM members and you pioneers of proptech and organized real estate insiders.

Drew set up an Eventbrite page please click here to register = > GEM Soiree/NAR NXT Pre-Party

Inman News’ Andrea Brambila is “live on the scene” for the Sitzer | Burnett case

I don’t think they allow phones or recording devices in the courtroom for the Sitzer | Burnett lawsuit but Inman News has sent Andrea to cover the courtroom case and they have posted a website, for “live updates”. I don’t think anyone has as much understanding of the issues more than Andrea so I’m glad they sent her!

You can check the Live Updates site here.

RE/MAX Settles…2 down 3 to go?

RE/MAX settles buyer broker commission lawsuits for $55 million

“The Settlement resolves all claims in the Lawsuits and similar claims on a nationwide basis against RE/MAX … and releases RE/MAX and the Company, their subsidiaries and affiliates, and RE/MAX sub-franchisors, franchisees and their sales associates in the United States from the Claims,” the SEC filing reads.

“By the terms of the Settlement, RE/MAX agreed to pay a total settlement amount of $55.0 million … into a qualified settlement fund. In addition, RE/MAX agreed to make certain changes to its business practices.”

Brooklee Han for Housing Wire

Once again, if I’m proven right about the lawsuits being settled, I’m going to be unbearable. 😈

NAR Executive Committee stands by NAR staff, including Goldberg

NAR throws support behind Bob Goldberg in face of growing unrest

“The consensus among the Executive Committee is we need to rebuild trust with staff and members with meaningful change,” she added. “We are bringing in third party experts to carefully and comprehensively look at what we’re doing now for what works, what needs to be changed and what is missing. We also will support and empower staff in their similar efforts. The Executive Committee agreed we have a shared purpose and are united in support of our staff and that includes Bob.”

Marian McPherson for Inman News

Everybody just breathe.

The Pickle

Lots of chatter out there on the after math of the New York Times expose on Kenny Parcell’s alleged sexual harassment.  Brad Inman is reporting that there’s a big meeting being held of NAR’s executive leadership today regarding next steps. The knives are out. Some knives are from members, some from past leadership/staff who are looking for revenge. Some are even speculating that Bob Goldberg and Katie Johnson may be asked to resign.

I’m not sure I agree with those looking for more blood.  Things are more complicated than they may appear.

Case in point, is there a policy that states NAR leadership can’t have relationships with staffers? Apparently there is a policy that NAR staffers cannot.  In this scenario if Kenny cheated on his wife with a NAR staffer, he may have not violated a NAR policy.  Now you would think that someone in that position would resign.  Optics, code of ethics, be beyond reproach, and such, whether it’s violating a direct policy or not.  I think most people hold our leaders to higher standard.  We’d rather not have them cheat on their wives, pay off porn stars, or have their children profit from their position.  But I digress.

But, what is the staff’s role in this, if the leader doesn’t resign?  They can’t fire them.  My understanding is the president is the leader of the organization and is the over the staff in regard to chain of command.  In fact I’m sure the president can direct the staff to hire attorneys to help defend themselves to keep their position.

The staff is caught in a classic pickle.

Obviously many of us (including me), don’t know what we don’t know. And I may be wrong in my assumptions. But, in my opinion it would be a shame to see the careers of two dedicated leaders cut short due to the stress behind one man’s belt buckle. Which is another pickle altogether.

IYKYK

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