The consumer advocates of the National Association of Exclusive Buyer Agents (NAEBA) warn that efforts to "decouple" home seller and buyer commissions will hurt home-buying consumers and potentially circumvent Fair Housing laws.
At least two class-action lawsuits claim, among other things, that a National Association of REALTORS® (NAR) rule requiring an offer of buyer agent compensation for properties listed on a multi-listing service (MLS) violates federal antitrust laws. As it currently stands, NAR's MLS policy requires participants to communicate an offer of compensation, sometimes referred to as a cooperating commission, to other MLS participants. That offer can be any amount, including $0. While an offer of compensation comes from the seller's side of the transaction, only the home buyer brings the full purchase price to the closing.
NAEBA members have always embraced greater transparency and consumer choice. They caution a prohibition against seller agents paying buyer agents commissions is anti-consumer, leading to fewer home buyers retaining representation and more dual agency. Dual agency is when the same real estate agent or brokerage represents the buyer and the seller in the transaction.
"A system that makes it harder for first-time and lower-income home buyers to retain loyal representation won't save home-buying consumers money," NAEBA president Rich Rosa said. "The lack of trusted representation will lead to costly mistakes, ultimately costing home buyers more money."
Another lawsuit also calls into question the rule requiring REALTOR® members who list properties in alternative databases to list the properties on an MLS. Sellers, of course, can choose not to list with a REALTOR® and avoid the MLS entirely.
NAEBA believes calls for dismantling rules requiring REALTOR® members to list all advertised properties on the MLS are dangerous. Allowing REALTORS® to bypass their local MLS for alternative platforms, encouraging what is known as a "pocket listing," could lead to sellers and agents circumventing Fair Housing laws and opening the door to disparate treatment of protected classes. At a minimum, it severely limits a seller's exposure of their home to the marketplace and more than 1.5 million REALTORS®, potentially costing sellers a lower sale price.
"Why would any seller want to limit exposure of their listing to home buyers," Rosa said. "A seller doesn't have to use a REALTOR® or any real estate agent, but real estate professionals should not encourage 'pocket listings' and limit which consumers see homes for sale."
Read the news release here: https://www.prweb.com/releases/consumer-advocates-warn-lawsuits-will-hurt-home-buyers-circumvent-fair-housing-laws-301968614.html
