What's Next: Sitzer/Burnett v. NAR Commission Case
Todd Book, Vice President of Legal and Legislative Affairs at Ohio REALTORS, and Stephen McCoy, Vice President of Legal Services & Regulatory Affairs discuss the verdict in the NAR vs. Sitzer | Burnett Commission Trial, what it means for REALTORS and consumers and what we can expect from the case moving forward.
On Tuesday, A jury sided with the plaintiffs in the Sitzer/Burnett v. NAR Commission trial. This means the jury has found the National Association of Realtors, HomeServices of America and Keller Williams guilty of colluding to inflate or maintain high commission rates through NAR’s Clear Cooperation Rule, in the Sitzer/Burnett buyer broker commission lawsuit. The defendants must pay $1.78 billion in damages.
"NAR released a statement that this matter is not close to being final as NAR will appeal the jury verdict on a number of grounds, including asking the court to reduce the damages awarded by the jury. The other brokerage defendants have signaled that they are also considering an appeal. " McCoy said.
"We remain focused on encouraging the use of buyer-broker agreements. These agreements maximize transparency by putting all agreements in writing to ensure clarity and understanding, as all members are obligated to do pursuant to the NAR Code of Ethics. These agreements formalize the professional working relationship with clients and detail what services consumers are entitled to and what the buyer agent expects from their client in return. Second, it’s also imperative for members to continue to express that commissions are negotiable and set between brokers and their clients; explain how local MLS broker marketplaces promote equity, transparency and market-driven pricing for consumers; and persistently communicate the incredible value agents who are REALTORS® provide. Brokerages are encouraged to discuss with their brokerage attorneys any changes to forms they feel are necessary to meet these important points. Check out the website competition.realtor to learn more." said Book.
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