Inventory for all property types declined in almost all areas, except for Rockland’s condo and co-op markets, the latter with an 84.6% gain. The Bronx led the region for new listings, with a 31.9% increase.
PrimeSource, which is a leading manufacturer of proprietary brands and a distributor of premier third-party brands, will utilize the location to service New York, New Jersey, Connecticut and Pennsylvania.
NAR President Sears Says ‘Settlement Represents a Pivotal Moment for Our Association and Our Industry’
In the settlement, we have agreed to require MLS participants working with buyers to enter into written representation agreements with their buyers. This change will go into effect in mid-July 2024.
CHICAGO—Since it announced its proposed settlement agreement on Friday that would end the litigation of claims brought on behalf of home sellers related to broker commission litigation, the National Association of Realtors has since provided updates explaining the scope of the $418-million settlement, its goals going forward and the impact on the industry.
NAR President Kevin Sears in a video stated “The settlement represents a pivotal moment for our association and our industry and I have full confidence in our ability to evolve once more to do what is needed to lead our members in the years to come.”
In a video on the association’s website that also featured NAR Chief Legal Officer Katie Johnson, NAR President Sears added, “There was no perfect option for resolving this litigation. This settlement will bring changes for all of us.”
In a letter to state and local association executives released on Friday, NAR President Sears explained that the agreement, which must secure court approval, would resolve claims against NAR, over one million NAR members, all state/territorial and local Realtor associations, all association-owned Multiple Listing Services (MLSs), and all brokerages with a NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below.
“From the beginning of this litigation, we had two goals,” Sears stated, “secure a release of liability for as many of our members, associations, and MLSs as we could; and preserve the choices consumers have regarding real estate services and compensation.”
He noted that NAR continues to deny any wrongdoing and “has long maintained—and we continue to believe—that cooperative compensation and NAR’s current policies are good things that benefit buyers and sellers.” Sears outlined the key terms of the proposed settlement, which include:
Release of liability: The agreement would release NAR, over one million NAR members, all state/territorial and local Realtor associations, all association-owned MLSs, and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below from liability for the types of claims brought in these cases on behalf of home sellers related to broker commissions.
NAR fought to include all members in the release and was able to ensure more than one million members are included. Despite NAR’s efforts, agents affiliated with HomeServices of America and its related companies—the last corporate defendant still litigating the Sitzer-Burnett case—are not released under the settlement, nor are employees of the remaining corporate defendants named in the cases covered by this settlement.
Compensation offers moved off the MLS: NAR has agreed to put in place a new rule prohibiting offers of compensation on the MLS. Offers of compensation could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. And sellers can offer buyer concessions on an MLS (for example—concessions for buyer closing costs). This change will go into effect in mid-July 2024.
Written agreements for MLS participants acting for buyers: While NAR has been advocating for the use of written agreements for years, in this settlement we have agreed to require MLS participants working with buyers to enter into written representation agreements with their buyers. This change will go into effect in mid-July 2024.
Settlement payment: NAR would pay $418 million over approximately four years. This is a substantial sum, and it will be incumbent on NAR to use our remaining resources in the most effective way possible to continue delivering on our core mission. NAR’s membership dues for 2024 will not change because of this payment.
Sears concluded his letter to association executives by saying: “We know from our association’s 116-year history that Realtors are adaptable, and I’m confident that this agreement provides a path for us to move forward and continue our work to preserve, protect, and advance the right to real property for all.
Additionally, there are materials available for members about the announcement at facts.realtor. Members will need their NAR login credentials to access these materials.
Inventory for all property types declined in almost all areas, except for Rockland’s condo and co-op markets, the latter with an 84.6% gain. The Bronx led the region for new listings, with a 31.9% increase.
PrimeSource, which is a leading manufacturer of proprietary brands and a distributor of premier third-party brands, will utilize the location to service New York, New Jersey, Connecticut and Pennsylvania.
City and State honored 100 “New Yorkers who are on the front lines, creating jobs and spurring economic growth on the local, state and national levels.”
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