In a statement to NAR members, Kevin Sears confirmed that executives from the trade group met with Assistant Attorney General Jonathan Kanter last week to discuss an update on the settlement. .
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The U.S. Justice Department is focused on blocking the National Association of Realtors’ proposed commission settlement ahead of a court ruling later this year, the industry group’s president told members after a closed-door meeting with federal regulators last week. loopholes.
In a meeting chaired by Assistant Attorney General Jonathan Kanter, Justice Department regulators told NAR executives, including President Kevin Sears, that the agency was keeping a close eye on the form. Updated to comply with the terms of a settlement agreement reached between NAR and dozens of brokerage firms and MLS earlier this year.
“The Department of Justice will continue to closely monitor efforts to create ‘loopholes’ or ‘workarounds’ to achieve the purposes of the settlement agreement,” Sears wrote a message posted Saturday on the Realtor Hub, NAR’s members forum. “The Department of Justice appears to be particularly concerned about whether pro forma agreements are a vehicle to achieve this goal.”
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U.S. Department of Justice Already stated It doesn’t want to see listing agents compensate buyers’ agents anywhere. The offers will be removed from multiple listing services as part of the NAR settlement, but some in the industry remain divided over where compensation offers can be advertised. As a result, a wave of new companies have sprung up like mushrooms after a rain Offers agents and consumers the option of advertising commission offers.
The U.S. Justice Department has yet to weigh in on the new companies.
NAR did not immediately respond to a series of questions, including what else was discussed during the meeting, how often the group meets with the Justice Department and whether the groups discussed other ongoing litigation.
The meeting and subsequent memo to NAR’s 1.5 million members are the latest sign that the DOJ is paying close attention to the real estate industry following the October Sitzer | Burnett’s decision opened the floodgates for similar lawsuits.
Sears told members that in addition to the forms, regulators have expressed to NAR executives that the agency is concerned that bad actors will use other avenues to “circumvent” upcoming practice changes. But he did not provide more details about the pathways that federal regulators are most concerned about.
“To be clear, NAR — and I personally — oppose any attempt to circumvent the settlement agreement,” Sears wrote. “Changes in practice should be implemented comprehensively and in good faith to promote consumer empowerment, consumer choice and healthy competition.”
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Sears noted that the meeting between NAR and DOJ does not mean the agency will abandon other recent investigations into the industry.
Brokerage firms and associations are now scrambling to create forms, including updated Buyer Representation Agreements, to be used in home transactions. Sears provided guidance he said was informed by meetings with Justice Department regulators.
Sears told associations and brokerage firms it is updating the form to ensure it is clear and emphasizes consumer choice.
Last week, a consumer watchdog A report has been released claiming that the real estate industry is gearing up for a format that is confusing and favors real estate agents over consumers. timehe The California Association of Realtors is one of the associations targeted by the Consumer Federation of Americamade the decision to postpone The U.S. Department of Justice contacted and provided nearly two dozen documents.
“CAR has received from [DOJ] There has been extensive feedback about these forms and our members,” CAR General Counsel Brian Manson confirmed to Inman.
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