9 Things You Should Know About the Burnett v. NAR Ruling
Are Buyers Agents becoming obsolete?
On Tuesday, October 31, 2023, the jury in the case of Burnett v. NAR found the NAR and co-defendants responsible for the allegations made by the plaintiffs regarding high real estate commission rates, excessive payments to buyer brokers, and the influence of NAR rules and corporate practices on pricing.
It is crucial to clarify that NAR's rules are designed to prioritize consumers, promote market-driven pricing, and foster healthy business competition. The NAR's guidance for local MLS broker marketplaces ensures consumers receive comprehensive, transparent, and reliable home information, while providing fair competition opportunities for brokerages of any size, service, or pricing model.
Things You Should Know
1. Next Legal Steps and Timing:
- The NAR plans to appeal the jury's verdict.
- The NAR will request the court to reduce the damages awarded by the jury.
- Due to the nature of appeals, the case may not conclude for several years.
2. Basis for NAR’s Appeal:
- Specifics of the appeal will be provided when filed, but according to the NAR, they have a strong legal basis.
3. Impact on REALTORS®, Brokers, Associations, or MLSs:
- No immediate changes are required due to this verdict.
- Emphasis on buyer representation agreements and communication of negotiable commissions remains crucial.
4. Future of Buyer Representation:
- The verdict does not mandate rule changes, but it underscores the importance of expressing the value agents provide.
5. Effect on Ongoing Litigation:
- No impact on other cases, as each is tried separately, and we remain confident in our position.
6. Consideration of Settlement:
- The NAR is open to a resolution that benefits buyers and sellers while protecting members. Confidence in appeal success is maintained.
7. Cooperative Compensation Rule:
- The rule serves consumer interests, market-driven pricing, and business competition. The NAR consistently reviews rules to align with industry changes.
8. Plaintiffs Seeking Injunction:
- Unable to predict plaintiffs' actions, but any effort to contest the rule would be opposed, emphasizing its consumer-centric purpose.
9. Status with the Department of Justice:
- A separate matter from Burnett v. NAR, the agreement with the DOJ remains intact, with both parties fulfilling their commitments.
If you have any questions or concerns about this ruling, feel free to send us an email at hola@lachapulinaverde.com. We will do our best to ensure you understand how this may affect you as an agent.