Hey there, fellow real estate enthusiasts!
I’m excited to share some great news with you all. The National Association of REALTORS® has recently resolved nationwide claims brought by home sellers related to broker commissions. This is a big win for our industry and a testament to the hard work and dedication of everyone involved.
As part of our ongoing commitment to advocating for NAR and the real estate profession, we want to make sure that everyone is aware of the facts surrounding this settlement. It’s important to understand the impact this has on our industry and how it will shape the future of real estate transactions.
We do not set commissions – they are negotiable. The rule that has been the subject of litigation requires only that listing brokers communicate an offer of compensation. That offer can be any amount, including zero. Other rules throughout the MLS Handbook and NAR policy expressly prohibit MLSs, associations, and brokers from setting or suggesting any such amount that should be included in that field. The text of the current rule is linked here and excerpted below, the text of our MLS Antitrust Compliance Policy is linked here and excerpted below, and a notice included in NAR’s MLS Handbook is below.
Under the long-established policy of this association, the Illinois Association of REALTORS®, and the National Association of REALTORS®:
The broker’s compensation for services rendered in respect to any listing is solely a matter of negotiation between the broker and his or her client and is not fixed, controlled, recommended, or maintained by any persons not a party to the listing agreement.
The compensation paid by a listing broker to a cooperating broker in respect to any listing is established by the listing broker and is not fixed, controlled, recommended, or maintained by any persons other than the lister broker. (Amended 4/92)
Boards and associations of REALTORS® and their MLSs shall not:
Fix, control, recommend, or suggest the commissions or fees charged for real estate brokerage services (Interpretation 14).
Fix, control, recommend, or suggest the cooperative compensation offered by listing brokers to potential cooperating brokers.
Again, the current rule that has been the subject of litigation does not set commissions.
As reflected in our release about the proposed settlement agreement, NAR has agreed to put in place a new MLS rule prohibiting offers of broker compensation on the MLS. Commissions remain negotiable, as they have been.
At Master Partners Realty, we take pride in keeping our agents and clients informed about the latest developments in the real estate world. We believe that knowledge is power, and by sharing this information, we can all continue to grow and thrive in this ever-evolving industry.
So, if you would like more details of the settlement and how it may affect you as a real estate professional or home seller, don’t hesitate to reach out to us. We’re here to support and guide you through any questions or concerns you may have.
Here’s to a bright future for real estate, and to many more victories for our industry!
Best,
David Rigney at Master Partners Realty