NAR Lawsuit Gains Class Action Status.

Real Estate News TV

NAR. There’s a lawsuit against you, and it just gained class action lawsuit. Class action status. So I do have the article. I’m going to reference that and we’re going to just discuss around this topic in the event that any of your clients start to ask you about it or you’re concerned about like, where’s a future, what’s going on? And I’ll talk down some of these like rabbit holes of what could kind of happen with this whole thing. And they’re coming after your commissions in this situation, but not like actually you, but like maybe you. I don’t really know what’s going on. So let’s go ahead and share the screen here and we’ll reference this article and drop it in for you. So is your brain exploding agents? Brokers are all torn over this whole thing. So what’s going on? If we scroll down through the article and I’ll let Omar control that and scroll through as I discuss it, what’s basically going on here is there’s commissions, there’s a buyer and a seller, and then we have the buyer’s agent and the seller’s agent on both sides. Right. And there’s a commission paid out in the typical situation. So I’m not going to discuss the exact commissions or any of those things and have any violations here. But essentially what happens is when you do a listing, you agree with the seller on what’s going to happen with the commissions that there’s going to be X Commission offered to the listing agent and X Commission offered to the selling agent and you fill it in. It could be a whole number, it could be a percentage, could be like, whatever these numbers are, you fill them in, there’s blanks for everything and it’s agreed to contractually. Right. And you say this person is going to represent them in this person, going to represent them, and here’s how this is going to go. There’s all these boxes, you check these boxes and agreed to what’s going on. So the listing agent does that and inputs the data into MLS. So what this lawsuit is claiming is that they should be able to go back and, you know, because the buyer paid an artificially high price for the home and their claim is the buyer paid an artificially high price for this for this for all properties over the last eight years, because the commissions are being paid by the seller and not by the buyer. And with doing that, what happens is the prices are allegedly higher and they want all of the commission that was paid to the buyer’s agents, all of it over the last eight years, to be paid back to the buyer. So it’s a class action lawsuit asking for all that commission money back over the last eight years. Now, that would be like a crazy high number, right? Imagine all the buyer agent commissions over an eight year time frame. And then how do they get that money back? And like how and why? Because there’s already, like, an agreement. Contractually. That said, the seller is going to pay this commission and here’s how. And they entered into it and signed it all independently. And so this really goes down these weird rabbit holes, because if they let this actually happen and they sue. Well, I mean, honestly. Right. Think about this. Over the last eight years, do you have 100% of all the money that you earned sitting in a bank account that like, oh, man, I thought I might get sued someday. I would just pay that all out. So, like, nobody has that money, right? So fundamentally, what are they trying to go after and how that works? So then if you’re found liable, like there’s this class action lawsuit against all buyers agents, that the house is too high, like you have to pay this money back. Well, then you would go after and sue. The cellar, right. And then the cellar wood. It’s just like this rabbit hole of, like, who sues who and like, who tries to get this money back. And then you would suit the seller would sue the bank because the bank over like this whole thing just goes in a circle of what’s going on. And then do they really want all of the buyers to go unrepresented? Because --- Send in a voice message: https://podcasters.spotify.com/pod/show/realestatenewstv/message