Share this @internewscast.com

The National Association of Realtors has agreed to a landmark settlement that would eliminate real estate brokers’ longstanding automatic commissions, commonly of up to 6% of the purchase price.

Instead, home buyers and sellers would be able to negotiate fees with their agents up front. If the $418 million legal agreement is approved by a federal court, consumer advocates predict the ranks of real estate agents will thin, further driving down commission prices.

“For years, anti-competitive rules in the real estate industry have financially harmed millions,” said Benjamin Brown, managing partner at the Cohen Milstein law firm and one of the settlement’s negotiators. “This settlement bring sweeping reforms that will help countless American families.”

The NAR acknowledged the pending settlement in a statement Friday and denied any wrongdoing.

“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers,” said Nykia Wright, interim CEO of NAR, whose previous chief stepped down late last year amid fallout from a federal lawsuit.

“It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals,” Wright said in the statement.

Currently, a home seller is essentially locked into paying a brokerage fee for listing their property on a Multiple Listing Service, or MLS — usually 5% or 6% depending on their geographic area. Upon selling, half the fee goes to a listing agent representing the seller, while the buyer’s agent gets the other half.

The practice — which has become standard in the real estate industry in recent decades — led to accusations that some buyers’ agents were steering prospects toward more expensive homes. In November, a federal jury found the NAR and some major brokerages liable for colluding to inflate commission fees, ordering the trade group to pay a historic $1.78 billion in damages.

“It’s a bribe,” Doug Miller, an attorney and longtime consumer advocate in the real estate industry, said of the commission-splitting arrangements. “You’re paying someone to negotiate against you. There’s no good reason for sellers to pay buyer-brokers.”

If the settlement is approved, brokerage commissions would be stripped from MLS sites and opened up to negotiation with sellers, among a series of other changes. Home buyers, too, would also be able to negotiate fees more easily if they choose to sign up with a broker — though experts say the new arrangement may incentivize more buyers to forgo brokers entirely.

The new brokerage-fee changes would begin to take effect within months of the settlement’s approval. A preliminary hearing to approve the deal is slated to take place in coming weeks.

Share this @internewscast.com
You May Also Like
Taylor Swift subpoenaed as witness in legal case bteween Blake Lively, Justin Baldoni

Taylor Swift Summoned as Witness in Legal Dispute Between Blake Lively and Justin Baldoni

Taylor Swift has been subpoenaed in the case between Blake Lively and…
White smoke over Sistine Chapel as new pope chosen

White Smoke Appears Over Sistine Chapel Signaling Election of New Pope

Conclave Chooses New Pope White smoke drifts from the Sistine Chapel’s chimney…
Screenshot of a news report about a TikTok trend of Chromebook destruction in a classroom.

Parents Alerted About Latest ‘Spark’ TikTok Challenge Resulting in $304 Fines for Children’s Misconduct

PARENTS could cop a $304 fine if their children are involved in…
'This Is What I Voted For': Trump Executive Order Fulfills Big Promise on Care for Vets vs. Illegals

“Trump’s Executive Order Delivers on Promise to Prioritize Veterans’ Care Over Services for Undocumented Immigrants”

Throughout the 2024 presidential race, President Donald Trump vowed to reallocate funds…
Newark airport issues: Radar for air traffic control went black again overnight

Newark Airport Troubles: Air Traffic Control Radar Went Dark Again Overnight

The initial radar outage resulted in numerous cancellations and delays of Newark…
Numbers give clear picture of how much OG Anunoby has shut down Celtics

Stats Highlight OG Anunoby’s Strong Defensive Performance Against the Celtics

The numbers, by this point, have become staggering. Since joining the Knicks…
Dem Congress members storm New Jersey ICE prison to conduct 'oversight visit': 'People deserve dignity'

Democratic Congress Members Visit New Jersey ICE Facility for “Oversight Tour”: “Everyone Deserves Dignity”

Three Congressional members made their way through the gates of a U.S.…
 'Rivals' season two: See behind-the-scenes clip as cast gathers for first table read

‘Rivals’ Season 2: Check Out Behind-the-Scenes Footage of the Cast’s First Table Read

LOS ANGELES — The Cotswolds are calling and “Rivals” is answering. The…
Documents, emails show timeline of Jacksonville approving logbooks of gun owners

Timeline Revealed: Jacksonville’s Approval of Gun Owner Logbooks Through Documents and Emails

The State Attorney’s Office has launched a probe into Jacksonville’s gun logbook…
Jacksonville police secure AR-16, more weapons from armed suspect

Jacksonville Police Confiscate AR-16 and Additional Weapons from Armed Individual

The Jacksonville Sheriff’s Office clarified that the substantial police activity on Friday…
Uncle Sam’s Devil’s Island: From Al Capone to ‘Machine Gun’ Kelly, meet Alcatraz’s most infamous inmates

Alcatraz’s Notorious Residents: From Al Capone to ‘Machine Gun’ Kelly

President Donald Trump, in a Sunday evening post on Truth Social, called…
Mayor Baraka of Newark, New Jersey, arrested at ICE detention center he has been protesting

Newark Mayor Baraka Arrested During Protest at ICE Detention Center

NEWARK, N.J. (AP) — On Friday, Newark Mayor Ras Baraka was taken…