In remarks in Boston that were later posted online, NAR's new president, Kevin Sears, declared that real estate agents' business will change, whether they embrace it or are “forced” to do so.
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National Association of Realtors President Kevin Sears warns brokers and intermediaries will be in “bigger trouble” than the U.S. Department of Justice's multibillion-dollar judgment in the Antitrust Commission case heard in October did.
Mr. Sears, who took over as president of the industry group a month ago following the resignation of Tracy Kasper, spoke at the Crash It in Real Estate conference in Boston on February 1. He was captured on video by Jack Gately of the Online Real Estate Academy. weekend.
Mr. Sears referred to a lawsuit known as “Sitzer.” The Barnett lawsuit was originally filed in 2019 and won class action status in April 2022. The lawsuit alleges that some NAR rules apply, including one that requires listing brokers to provide commissions to buyer brokers for listing multiple real estate agent-affiliated properties. services — violates the Sherman Antitrust Act by raising costs for sellers.
Sitzer | Barnett is a jury finding that NAR, Keller Williams, RE/MAX, Anywhere, HomeServices, and two of their subsidiaries, BHH Affiliates and HSF Affiliates, conspired to inflate the fees paid by home sellers. finished. A jury awarded nearly 500,000 Missouri homeowners $1.78 billion in damages. If the ruling stands, the law would triple that amount to more than $5.3 billion.
“The jury found us guilty,” Sears told event attendees.
“At the end of the day, even if our policies and actions were right, all you have to do as an athlete is look at the scoreboard. We lost.”
In a video commenting on Sears' appearance, Gately said Sears' admission of NAR's losses was “refreshing,” and said in a crowd of hundreds of real estate agents that “at this point, the pin is… I could hear it falling,” he said.
Sears went on to say that NAR is appealing Sitzer's multibillion-dollar case. Barnett verdict, but the “bigger problem” for the industry is the Justice Department.
“We've had them in our crosshairs for as long as we've been involved with the National Association of Realtors,” Sears said.
“We settled with them in 2020. In 2021 they broke the contract. We sued them and won in court. I mean, frankly, they were mad at us. There is.”
An appellate court in Washington, D.C., is currently considering whether the Justice Department can reopen its investigation of the commission rules at issue in Sitzer, despite NAR's objections. Barnett and a growing number of lawsuits across the country.
Sears also mentioned a proposed settlement in a similar antitrust case brought against MLS PIN, a broker-owned multiple listing service rather than NAR. MLS reached an agreement with the plaintiffs in the case, known as Nosarek, but the Justice Department expressed unspecified “concerns” about the agreement. Federal officials have until February 15 to submit expressions of interest in the case before the court decides whether to give preliminary approval to the settlement.
Notably, the Department of Justice has not intervened in the Anywhere, RE/MAX, and Keller Williams Sitzer settlement, at least so far. Barnett case and other commission cases across the country. Unlike NAR and MLS PIN, the franchisor is not the party responsible for potential changes to the rules at issue.
Citing the Justice Department's review of the Nosarek settlement, Sears said, “The reason I've been talking about this so much is because it changes the way we operate our business. We accept it and adapt. The situation will depend on whether you do that or force it down your throat.”
Sears, who is also a practicing physician, said he closed his business the previous week. “This was the first time I used a buyer representation agreement because there is a change happening,” Sears said.
He pointed out to his clients that their compensation from listing brokers was posted on the MLS, but he also said he “never understood why it was up to the seller or the other brokers or what his value was.” It is said that These are my values, and you agree to match them if no equivalent compensation is offered. 'And my client said, 'Kevin, that makes perfect sense.' Because I did everything I was going to do in the deal. [There are] A typical trade on the buy side has 180 steps. ”
Mr. Inman asked NAR how the Justice Department is a bigger problem than Mr. Sitzer. Burnett's verdict will determine whether Sears intends to suggest that the Justice Department's interest in NAR exceeds its duty to enforce antitrust laws and how NAR will change the way real estate agents operate their businesses. Do you intend to suggest what you expect or not? NAR did not respond. We will update this story if we receive a response.
Watch Mr. Sears speak about the Sitzer/Barnett decision and the Department of Justice at the event.
(Video provided by Jack Gately)
Editor's note: This article has been updated with a quote and video clip from Sears' appearance at the conference.
Email Andrea V. Brambilla.
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