Changes from a landmark settlement affecting broker commissions from America’s largest real estate trade association take effect this weekend.
Changes from a landmark settlement affecting broker commissions from America’s largest real estate trade association take effect this weekend, potentially creating a more complex and uncertain buying process for consumers, according to industry experts.
The changes made under the National Association of Realtors’ (NAR) $418 million settlement, announced in March, “adds more uncertainty and unknowns to an already stressful and pressured industry,” Phil Crescenzo Jr., vice president of Nation One Mortgage’s southeast division, told FOX Business.
While the deal is bound to make the process more complex, Pending CEO Noel Roberts, says it will pave the way for more transparency and negotiations with agency commissions on deals.
Pending is a tech-powered real estate firm that facilitates off-market transactions.
Under the settlement, NAR agreed to put in place a new rule prohibiting offers of compensation on listing databases governed by the group, also known as multiple listing services (MLS), to end a series of lawsuits claiming broker commission policies resulted in inflated fees and violated antitrust laws.
NAR didn’t admit any wrongdoing and has repeatedly said the trade group does not set commissions.
