Jim Klinge’s Post

Proposed NAR Settlement: Don't these two points in the proposed settlement seem contradictory? 1. No offers of compensation. MLSs must eliminate any requirements that brokers or sellers make offers of compensation through the MLS and prohibit the same. Similarly, MLSs must eliminate all broker compensation fields and prohibit sharing offers via any other fields in the MLS system. 2. Concessions in MLS permitted. Sellers may offer buyer concessions on the MLS (e.g., for buyer closing costs), so long as they are not limited to or conditioned on the retention of or payment to a cooperating broker.

This week, RISMedia highlighted 87 brokerages not covered by the recent lawsuit. IVRE was listed among them. We’re here to confirm we ARE covered under the NAR settlement, as verified by the settlement's submitting entity. IVRE agents ➡️ All NAR members are individually covered under the settlement! There’s also been a lot of talk about the new settlement eliminating buyer agent compensation. This is not true!! 🚫 The recent settlement does NOT eliminate buyer agent compensation. It simply removes it from the MLS. Key points from NAR: 1️⃣ Consumers retain the right to offer cooperative compensation, negotiated outside the MLS with real estate professionals. 2️⃣ Buyer brokers can still be compensated through various means, excluding MLS communication. 3️⃣ Compensation forms include fixed fees, seller concessions, or a portion of the listing broker's compensation. 4️⃣ Compensation remains negotiable, emphasizing transparency and professionalism. Agents, uphold your brand and profession. Collaborate with fellow agents, including buyer agents that bring a buyer to your listing. It is our job to educate the consumers. Disclose, be transparent, practice ethically and above all be professional!

The article summarizes key rule changes from the NAR class action settlement: listing brokers can no longer use the MLS for broker-to-broker compensation, sellers can’t advertise concessions for buyer broker fees, and buyer brokers must adhere to negotiated fees and have written agreements with buyers before property tours. PAR is updating its forms to reflect these changes. https://lnkd.in/egw9Kt5a

This will be VERY interesting to watch. While I agree with their decision to leave offers of compensation on the MLS, as less transparency does not benefit the consumer, unfortunately, there is a very high likelihood the DOJ will investigate or sue as they strongly believe (even though they are mostly wrong) that steering occurs because of this practice. If there is a change of administration and the DOJ is reigned in from it's current path, then I don't think this will go much further. All that being said, while the Northwest MLS has a very strong defense of their position with how they do disclosures and forms, I'm betting the DOJ at the very minimum issues a CID to start investigating them. https://lnkd.in/gdPUUpt5

Here's a hot take. NAR is abolished. Local MLS boards are abolished. A new national MLS System is created with uniform rules throughout the ENTIRE Country. No more paying different fees depending on the MLS boards with ridiculous rules and arbitrary fines that change weekly. A new National Real Estate Board is created that also oversees the national MLS. One set of dues covers both the National board and the national MLS. More transparency between both the national MLS and the national real estate board. Unified rules and regulations throughout the MLS. Including offering clear cooperation and compensation between buyer agents and seller agents. Let's GO.

Offers of Compensation... Are still allowed under the proposed Settlement, they just can NOT be offered through the MLS. MLS ceases to be an "Offer of Compensation" on August 17, 2024. MLS By-Laws and Rules are being changed to eliminate the "Offer of Compensation" through the MLS, as required by the proposed Settlement. Keep in mind that the Department of Justice has not weighed in on the proposed Settlement. And remember, the DOJ is not a party to the proposed Settlement but it wasn't a party to the MLS PIN/Nosalek case either and that did not stop it from filing a Statement of Interest in that case, causing delays. Some brokers see the "writing on the wall" and are not going to make or accept offers of compensation off MLS. We once referred to this commission sharing as a broker "Co-op fee." Competitors sharing is always a ripe target for the DOJ and its antitrust efforts. John Reilly Tristan Ahumada Karen Van Ness Mark Powell

For anybody following the NAR news, here is a quick breakdown of todays update from President Kevin Sears: Key Points: Lawsuit Settlement: • A proposed settlement resolves claims against NAR and members regarding home seller commissions. Who is Released: • Over 1 million NAR members (excluding some affiliated with specific companies involved in the lawsuit). • Brokerages with an NAR member as principal and a 2022 transaction volume below $2 billion. • NAR itself and its associations. Key Changes: • Compensation offers: Removed from the MLS system (effective mid-July 2024). • Buyer representation agreements: Required for MLS participants working with buyers (effective mid-July 2024). Financial Impact: • NAR will pay $418 million over four years. NAR denies wrongdoing: • Maintains cooperative compensation benefits buyers and sellers. https://lnkd.in/gQZscScA

NAR Proposed Settlement and Cooperating Commissions - What you need to know! The DOJ has not accepted the settlement yet, but it's important to know what is included. The video covers Cooperating Commissions, Buyer Agent Agreements, and the MLS -- watch this video to see what it all means and how you can prepare for the changes. https://lnkd.in/efgBw8gu

I wrote a couple of blog posts about the Practice Changes specified in the recent NAR Settlement Agreement. My goal is to provide insight from the many conversations I'm having with customers and industry partners so that our MLS customers can process and implement the changes as efficiently and effectively as possible, especially given the short timeframe. I'm also hoping to do that efficiently for FBS, which will be aided by developing standard approaches. As always, we're trying to balance local market needs with the efficiency of national standards. I hope you all find the posts valuable and join the conversation here or on the FBS Blog! First post: https://lnkd.in/gw_eY9Ji Second post: https://lnkd.in/g2Nqc8uk

The NAR settlement terms, as negotiated by NAR, include discontinuing the inclusion of a listing broker's offer of buyers agent compensation in the MLS platform (or any similar platform). On August 5, 2024 we will remove the compensation field set from MLS Listing Input. While this change in the settlement directly affects offers of compensation in the MLS, should a seller instruct their listing brokerage to offer compensation to a buyers agent, this can occur outside of the MLS - but no offer can be listed in any field in the MLS (including notes/remarks). While this will be very different from what we are all used to, the result of this change will be more discussion, transparency, and collaboration between all parties, and is a required term negotiated by NAR in the national settlement. It is important that CHS MLS members do not attempt to manipulate listings to insinuate what an offer of compensation may be. That practice would only make this transition more difficult for our industry. Do not use public or private remarks, photos, documents, or any other field.