Did You Receive A Commission Settlement Notice? 

A Class Action Suit against the National Association of Realtors and several major Real Estate Brokerages was filed years ago and a Federal Jury has made a decision. If you receive a notice in the mail, it is legitimate.

Several large Real Estate Brokerages along with the National Association of Realtors settled the lawsuit for over $730 Million Dollars.

The charge from the lawsuit was that commissions paid by Seller’s was in violation of federal antitrust law.

Here is how it worked for years:

Sell your home with a Realtor who markets the home in MLS to get optimum exposure. The Seller, who listed their home, agreed to pay a commission to the Listing Broker of their choice. This commission also included paying the Buyer’s Broker and was spelled out in our Arizona Listing Agreement form. In MLS, Buyer Agents were able to see how much they would get paid on each home they showed, if they successfully sold and closed escrow.

The new normal for this lawsuit is that Buyer Agents /Brokers will not know if the listing they are showing comes with a compensation for them.

The best practice and also required due to the settled lawsuit is to have the Buyer sign a Buyer Agreement form with the Agent/Broker of their choice before shopping for homes. The Buyer will pay their own Representative who will get paid upon a successful close of escrow.

The reality is this:

Commissions have always been negotiable.

Seller’s typically interview for the Agent/Broker before listing their property.

Buyer’s typically do not interview. I have always believed Buyer’s should interview to find the Agent/Broker to find the best match for them.

As a Realtor since 1984 and a Broker since 2009, I am seeing many Seller’s who are still willing to pay a Buyer’s Agent/Broker for selling and closing escrow on their home. The only way a Buyer’s Representative will know if they are being compensated by the Seller is to ask and make it part of the negotiations.

What has NOT changed:

A Seller just wants to get their Sold and a Buyer just wants to Buy the right house for them.

The Market dictates Supply and Demand.

An honest, transparent Agent/Broker is key to the experience! Please get recommendations, check out the Arizona Department of Real Estate for any complaints against the Agent/Broker you are considering and whether Selling or Buying please interview a few Agents/Brokers first.

Feel free to call and chat about this new normal!