Hello Friends,

You may have heard that the National Association of Realtors has settled a lawsuit that claimed that Realtors have been conspiring to cheat consumers. Many of my clients have been calling me to ask what happens now?

First, Realtors will no longer put cooperating broker commissions in the MLS, meaning Realtors working with a buyer will just have to hope that the seller will still pay them a commission to bring in a buyer to buy the home.

Second, all buyers must sign a “buyer broker agreement” before a Realtor may show them any houses. The buyer buyer broker agreement will spell out how a buyers agent will get paid in the real estate transaction.

Third, The buyers agent and buyer will negotiate with the seller to get paid by the seller (like they have done for 116 years). Previously this was done up front by the listing agent.

This system is a lot more messy and some would have you believe that Realtors will vanish. If you have ever purchased or sold real estate in California, the thought of going it alone and buying a house as a “do it yourselfer” is not something most people would want to do, nor should they.

There are so many things to know and so many disclosures. The risk of running afoul of the law is almost guaranteed not to mention the risk of getting duped.

My personal opinion is that this was a power play by “internet brokers” to get their homes into the mls without offering to pay a commission to a cooperating buyers agent. This is not good for consumers at all. For more information go to

https://www.nar.realtor/competition-in-real-estate?

Ed Kittle - Broker

Results Real Estate & Mortgage Inc.