FROM NAR: The National Association of REALTORS®’ settlement resolving antitrust claims brought against NAR and others in the Sitzer/Burnett case has been granted final approval. The court heard from all parties as well as objectors and the Department of Justice. Once arguments concluded, the court quickly ruled to grant final approval. The court is expected to soon issue a formal written order.
NAR’s class-action settlement was granted court approval Tuesday, securing a release of liability for over 1.4 million NAR members, all state/territorial and local REALTOR® associations, REALTOR® multiple listing services (MLSs), NAR’s affiliate organizations and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below. The settlement also releases MLSs and brokerages that chose to opt-in to the agreement.
A judge for the U.S. District Court for the Western District of Missouri delivered its decision following the final approval hearing earlier in the afternoon. As REALTOR® Magazine reported last week, parties who object to the settlement agreement still have the right to appeal.
“NAR’s goal throughout this process was to protect as many NAR members and their businesses; state, local, and territorial associations of REALTORS®; and multiple listing services as possible while preserving choice for consumers in their approach to buying or selling a home,” says NAR President Kevin Sears. “The principles of transparency, competition and choice are core to the settlement agreement and empower real estate professionals and consumers to negotiate the services and compensation that work for them. Preserving this optionality, including whether to offer compensation, is important to NAR’s efforts to support first-time home buyers and those from marginalized communities.”
In addition to a settlement payment, NAR agreed to institute two key practice changes: Barring offers of compensation from being shared on MLSs and requiring NAR members who work with buyers to sign written buyer agreements prior to touring a home. Those changes took effect Aug. 17.
“As consumer champions, NAR’s members have been working tirelessly to implement the practice changes required by the settlement and shepherd consumers through this period of transition,” says Sears. “The principles of transparency, competition, and choice are core to the settlement agreement and empower real estate professionals and consumers to negotiate the services and compensation that work for them.”
The settlement makes clear that NAR continues to deny any wrongdoing in connection with the Multiple Listing Service (MLS) cooperative compensation model rule (MLS Model Rule).
“NAR is committed to empowering REALTORS® to help home buyers and sellers successfully navigate what is often the most important financial transaction of their lives,” NAR CEO Nykia Wrights says. “Today and every day, NAR is focused on demonstrating the importance of REALTORS® in the marketplace, creating a transparent and inclusive home buying and selling process, and advancing the right to real property for all.”
For complete information on the settlement and the approval order once available, please visit facts.realtor.
