November 22, 2024

Everyone — from Michael Ketchmark to the consumer advocates behind Moehrl — is letting agents know that they’re under scrutiny as they implement the new rules of buyer agreement and (not) commission-sharing.

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Each week on The Download, Inman’s Christy Murdock takes a deeper look at the top-read stories of the week to give you what you’ll need to meet Monday head-on. This week: Everyone — from Michael Ketchmark to the consumer advocates behind Moehrl — is letting agents know that they’re under scrutiny as they implement the new rules of buyer agreement and (not) commission-sharing.

One of the big frustrations for agents and brokers coming from both the industry’s recent commission-related lawsuits and their subsequent settlements has been the jury-validated assertion of a vast real estate conspiracy when it comes to commissions. Imagine, then, what industry watchdogs make of conversations and planning that seem to suggest some Realtors are still planning to find ways to share commission-related information.

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We already know that the National Association of Realtors’ President Kevin Sears is aware of Department of Justice scrutiny on this issue. This week, we heard even more, including a two-part interview with Doug Miller and Wendy Gilch of the Consumer Advocates in American Real Estate, the watchdog that brought Gibson, the first of the so-called “bombshell” antitrust lawsuits, and a word of warning from the lead Sitzer-Burnett attorney.

In a phone interview, lead Sitzer | Burnett plaintiffs’ counsel Michael Ketchmark weighed in on the consequences of violating the NAR settlement, Zillow’s business model, and the “monster case” that remains.

According to Ketchmark, attorneys for homeseller plaintiffs in multiple antitrust cases will be keeping a close eye on how the real estate industry rolls out business practice changes to comply with the National Association of Realtors’ proposed settlement, and they’re looking to make examples out of brokers and MLSs who violate the deal.

“If anyone thinks they’re going to be able to avoid the application of this settlement agreement and the law by creating some new forms or hiding this cooperation on new websites, they’re wrong,” Ketchmark said. “If we get any sense that people or corporations are doing that out there as a way around this, we plan on taking swift legal action.”

EXTRA: In lawns and on key chains, stealth commission offers raise red flags

As we approach football season, it’s time to start using football-related metaphors, so here goes: The best defense is a good offense.

In this case, that means that knowing the ropes and staying educated on the rules is far preferable to trying to defend yourself for mistakes and workarounds after that fact. That’s why we’re here with plenty of advice, answers and analysis so that you’ll stay on the right side of all the folks who’ve got their eyes on your now.

The commission change mega-FAQ you need to start the historic week

Now that the “New Normal” has officially begun, it’s time to answer the frequently asked questions agents and brokerages have about the newly implemented commission settlement rule changes.

EXTRA: NAR settlement rules: Live updates as the real estate changes roll out

Watch out for these 3 pitfalls to avoid pricey fines in your future

Steep fines can stack up and swiftly put you in a sticky situation. What’s worse is when it’s your competition turning you in. Trainer Rachael Hite tells you how to stay on the right side of the rules.

EXTRA: Law firms seek $36.8M out of $110M settlement pool in Gibson

Got commission questions? This compliance expert has answers

Compliance expert Summer Goralik has the answers to queries from Cara Ameer’s13 more questions agents should ask about commission settlements” as we head into the post-settlement transition.





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