RE/MAX LLC recently proposed an agreement to settle class action lawsuits that questioned buyer commissions and the National Association of Realtors (NAR) rule that requires brokers to pay portion of commissions to the buyer brokers. The proposed agreement, if accepted in the district court, would end such NAR rule and free brokers from the commission payment requirement, parties involved in the process have confirmed.
The NAR rule in question has been in place for about 40 years and revolves around the notion that a commission paid by a seller should be shared between the selling and buyer brokers. According to RE/MAX, the settlement would resolve two separate class action lawsuits in which the buyers argued that due to the broker-to-broker commission requirement enforced by NAR, they were prevented from negotiating commissions with their own buyer brokers.
• Proposed agreement: RE/MAX LLC recently proposed an agreement to settle class action lawsuits concerning buyer commissions and the National Association of Realtors (NAR) rule requiring brokers to pay a portion of commissions to buyer brokers.
• The intent: The settlement agreement, if accepted in the district court, would end the NAR rule and free brokers from the commission payment requirement.
• Implications: The proposed settlement would resolve two separate class action lawsuits in which buyers argued that they were prevented from negotiating commissions with their own buyer brokers due to the broker-to-broker commission requirement enforced by NAR.
• Established rule: The NAR rule in question has been in place for about 40 years and revolves around the idea that a commission paid by a seller should be shared between the selling and buyer brokers.
You can read this full article at: https://www.housingwire.com/articles/re-max-settlement-ends-nar-membership-requirement/(subscription required)
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