On March 15, the National Association of REALTORS® announced a proposed settlement that would end litigation claims brought on behalf of home sellers related to broker commissions. The agreement would resolve claims against NAR, state/local REALTOR® associations, and more than 1 million REALTOR® members.
While the parties await court approval to the proposed settlement, Texas REALTORS® is actively engaged in evaluating how this agreement will affect REALTORS® and real estate consumers in Texas.
“We are working to determine how the settlement will affect the litigation in Texas, our policies, and our forms,” said Texas REALTORS® Chairman Jef Conn. “This is a significant development, and the process for acquiring court approval could extend over several months.”
Texas REALTORS® is reviewing the association’s forms to determine what changes are needed to be in compliance with the settlement agreement if approved by the court. Texas REALTORS® is particularly focused on client representation and broker compensation to ensure those issues are addressed in the forms in a way that meets the needs of Texas REALTORS® members and their clients going forward.
“Misleading headlines about the existence of standard commissions are alarming and inaccurate,” said Conn. “We want to set the record straight––commission fees and compensation structures are not dictated by NAR or any REALTOR® association. Compensation was negotiable before the settlement and will continue to be negotiable.
“REALTORS® work on behalf of their clients every day to help navigate the complexities of real estate transactions. With the average home on the market receiving three offers, buyers are better served when they have a REALTOR® representing them and fighting on their behalf. Buyer's agents can match homebuyer needs in helping their clients evaluate properties, connect with a wide network of real estate-related professionals, and assist with negotiations.”
Texas REALTORS® will provide updates as new information becomes available. For details about the NAR settlement, including FAQs, visit competition.realtor.
