Some members of the National Association of Realtors (NAR) are facing class action lawsuits. Some have already settled.
- Anti-trust?
- Commissions.
- MLS.
- Downside of Dual Agency.
- Double-siding the commission.
- Where did that 6% commission rate come from?
Watch DownbeachBUZZ Real Estate webcast from 9.14.23
Sherri Lilienfeld of EXP Realty.
Margate. Ventnor. Longport. Brigantine. Lower Chelsea.
Breaking News: Another settlement. The dominoes are beginning to fall.
An important milestone has been reached as RE/MAX becomes the second real estate franchisor to reach a settlement in two lawsuits that could reshape the way consumers compensate agents.
Under the terms of this settlement, RE/MAX has agreed to pay $55 million, alongside making strategic adjustments to its business practices.
On Mon Sept. 18, RE/MAX and plaintiffs involved in the Sitzer/Burnett lawsuit, (scheduled for trial on Oct 16) informed the court about a comprehensive settlement reached by the parties involved.
Case shined spotlight on dark closets of “good ol’ boy” mentality in real estate. A silent arrangement Realtors agree to when we sign up but not fully aware we’re potentially violating law.
I wonder about NAR and MLS the way we know it.
NAR and MLSs will most likely experience a huge facelift, if they remain standing, especially NAR since their bombshell sexual harassment scandal.
This bombshell case will result in major changes for all of us and we will either adapt and thrive or stick to the “good ol’ boys club” and find a new job.
Venture: The bombshell commission lawsuits have certainly ignited a significant legal firestorm. Anywhere’s decision to tap the first domino in this complex legal battle has set a precedent that could potentially reshape the landscape of commission-based industries. It will be crucial to observe how other entities respond to this bold move. This might prompt a cascade of similar lawsuits across different sectors, leading to a wider examination of commission structures and their fairness. The outcome of these lawsuits will undoubtedly have far-reaching implications for both businesses and workers, as they grapple with the evolving dynamics of compensation and commission-based models.
Sam Trantham: The most tumultuous event in the industry because it will eventually remove buyer agent from the transaction, and will enevitably downgrade the commission structure into a flat fee rate paid by sellers. Once sellers sale costs continue to fall due to hyper competition among listing agents, the seller consumer will benefit as the sales costs fall further and further. So sorry for buyer agents who will either migrate to listing side or leave entirely. Great opportunity for lenders to further develop or invest into B to C lead generation platforms because agent referrals will disappear when the commission opportunity evaporates. But that’s only a 25 year experience opinion.
A dual agent, in the context of real estate, refers to a situation where a single real estate agent or broker represents both the buyer and the seller in a real estate transaction. This means that the agent is working on behalf of both parties simultaneously, which can create potential conflicts of interest.
Here’s how it typically works:
Seller’s Agent: The real estate agent initially lists the property for sale and represents the seller’s interests. They market the property, facilitate showings, negotiate offers, and handle the transaction process on behalf of the seller.
Buyer’s Agent: When a buyer expresses interest in the property, the same agent may also represent the buyer. In this case, they help the buyer find properties that meet their criteria, arrange showings, and assist with the purchase process.
While dual agency is legal in some jurisdictions, it can present challenges and potential conflicts of interest, as the agent must act in the best interests of both the buyer and the seller. This means that they need to balance the competing interests of two parties in the same transaction. To address these conflicts, some states and regions have specific rules and regulations governing dual agency relationships, such as requiring informed consent from both parties and full disclosure of any potential conflicts.
In many cases, buyers and sellers may choose to have separate agents to avoid conflicts of interest and ensure that each party’s interests are represented more independently. This arrangement is known as single agency, where one agent represents the buyer and another represents the seller, providing a clearer division of interests.