Still running through the docs. One reader tipped me off to this nugget; Check out #8 of NAR FAQ on the settlement:
“8. How does the settlement affect MLSs?
• The agreement would release association-owned MLSs from liability for the types of claims brought in these cases on behalf of home sellers related to broker commissions.
• While the release excludes MLSs that are not wholly owned by REALTOR® associations, the agreement provides a mechanism for those MLSs to obtain releases efficiently if they choose to use it…”
“The settlement includes many significant rule changes. It bans N.A.R. from establishing any sort of rules that would allow a seller’s agent to set compensation for a buyer’s agent, a practice that critics say has long led to “steering,” in which buyers’ agents direct their clients to pricier homes in a bid to collect a bigger commission check.
And on the online databases used to buy and sell homes, the M.L.S., the settlement requires that any fields displaying broker compensation be eliminated entirely. It also places a blanket ban on the longtime requirement that agents subscribe to multiple listing services in the first place in order to offer or accept compensation for their work.”
Debra Kamin, New York Times
Story is developing. I’ll try and get more details.
“For my birthday this year, I’m asking for donations to Realtors® Association of Maui Community Foundation, Inc. The goal amount might seem ridiculous but I know enough influential REALTORS® and real estate professionals that it’s possible if you decide to donate and share this effort with your network.”
My thanks to VestaPlus for sponsoring this month’s Vendor Alley. I got a chance to sit down and talk with Kelly Robinson on my Listing Bits podcast. Kelly is a pioneer in the web-based MLS industry and is now heading up the sales and industry relations at VestaPlus. Kelly was also a featured speaker at the CoreLogic’s Clareity24 MLS Workshop last week.
To find out more please visit their website. My thanks again to VestaPlus.
Both ARMLS and Metro MLS have filed a “motion to dismiss” against Zillow. Sadly with everything going on in the industry I’m getting better at reading these legal documents. If you have a time I would recommend reading them, because this will affect many other MLS organizations.
I’m not your attorney but I think the judge will honor their request to dismiss.
“REcore is committed to the progress and modernization of MLS technologies, and we were very impressed by the sophistication of NorthstarMLS’s proprietary tech,” said Katie Smithson, Chief Revenue Officer for REcore. “We look forward to developing further their already great tools into something that a wide range of MLSs and Associations can employ.”
REcore
I’ve said it before and I’ll say it again, the ambition of what REcore is doing is amazing. They have their work cut out for them, and will quickly discover that running an MLS organization is not the same of being a vendor. But I wouldn’t bet against them, Art has assembled a great team that has tons of experience. I’m super stoked to be a small part of it.
What impact will the Department of Justice’s stance on the MLS settlement have on the future of buying and selling houses? In this important episode of “Industry Relations,” Rob and Greg talk about a big message from the Department of Justice (DOJ) about the MLS PIN settlement. The DOJ seems to want the court to say no to the settlement. Selling agents might not make as much money as before, and buyers agents might need to show why they’re worth their commission more than ever. It’s time to start thinking about how we can prepare for change and innovate new approaches in serving buyers and seller.
Well we were all speculating whether or not the DOJ would give any clear direction on how they picture compensation to be handled thru the MLS. The DOJ did, and it’s a whooper. Basically they don’t think reducing offers of compensation down to zero matter at all. They want the industry to make a full break from seller setting the buyers agent commission at all. And site “steering” as a concern. So, more like a commercial model. This is something listeners of Industry Relations have heard Rob Hahn echo since the beginning, that steering was the main issue.
In a huge surprise this “Statement of Interest” references the Industry Relations podcast and Rob, myself and Ed Zorn directly,
“Rob Hahn & Greg Robertson interviewing Ed Zorn (VP & General Counsel atCalifornia Regional MLS), Burnett v. NAR: The Lawsuit That Could Upend the Housing Market, Industry Relations (Oct. 18, 2023), starting at 43:40, www.youtube.com/watch?v=pw39NB3w_0o&t=11s (“You do realize under this system (of the seller paying the buyer’s agent directly inside the contract) you do realize a closing statement at a title company or an escrow company looks 100% identical as it does today. With both commissions on the seller side. Nothing changes. The only thing that changes is the number that shows up for the buyer’s agent in that closing statement was negotiated between the buyer directly and the buyer’s agent and had nothing to do with the seller or the listing agent. That’s the one thing that’s different.”
STATEMENT OF INTEREST OF THE UNITED STATES, Department of Justice (DOJ)
I’m not sure whether to be honored or scared shitless that the DOJ listens to our podcast!
For clarity I’ve embedded the YouTube video so that you can see what the DOJ was referencing on our podcast, I started it a bit earlier so you can get some context ( I also think this is good primer to understand what the DOJ is asking for.)
Rob and I record our Industry Relations podcast today at 10AM. Should be a good.
The industry owes the folks at T3 Sixty a lot of gratitude for putting this information together. Whether you are a vendor, MLS organization or Association this data is gold when it comes to planning.
