This message from CEO Brent Swander was sent to Columbus REALTORS® members on March 15 following the announcement of a settlement by the National Association of Realtors®.
As many of you have seen, this morning, the National Association of REALTORS® announced a settlement that would end litigation of claims brought on behalf of home sellers related to broker commissions. I was fortunate to be included on a call with NAR leadership early this morning while attending NAR’s Association Executives Institute.
Columbus REALTORS® and its leadership have been preparing for scenarios like this for months, and we are ready to comply with the settlement's terms pending approval. We believe this decision preserves consumer choice and protects our REALTOR® members, and we will continue to update the membership when new information is released.
2024 Columbus REALTORS® President Scott Hrabcak also wished to provide a message to our membership.
“I understand that the uncertainty surrounding our industry has been challenging for our members over the last year,” said Hrabcak. “I am confident that today’s announcement from NAR provides some clarity and gives us a positive path forward. The goal has always been to promote access to home ownership, and Columbus REALTORS® leadership is dedicated to seeing this through while providing an exceptional home-buying and selling experience for our consumers.”
The agreement, which is subject to court approval, would resolve claims against NAR, over one million members, all state/territorial and local REALTOR® associations, all association-owned Multiple Listing Services, and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below.
Here are a few key points from NAR…
Compensation offers moved off the MLS: NAR has agreed to implement 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. NAR’s membership dues for 2024 will not change because of this payment. NAR continues to deny any wrongdoing: NAR has long maintained that cooperative compensation and NAR’s current policies are good things that benefit buyers and sellers. They promote access to property ownership, particularly for lower- and middle-income buyers who can have a difficult enough time saving for a down payment. With this settlement, NAR is confident it and its members can still achieve all those goals.
We encourage all members to visit the recently launched website,facts.realtor, for more information and updates surrounding this case.
We promise to continue to update you on any new information that may arise. Thank you for all you are doing for your clients in central Ohio. We are proud to advocate for you and this industry.
Sincerely,
Brent Swander
CEO, Columbus REALTORS®
