While continuing to deny any wrong doing, the National Association of Realtors got one step closer to closing the door on the commission fiasco on Tuesday as a U.S. district judge signed off on the settlement between NAR and home sellers who sued the group over its longstanding commission rules. The agreement is still subject to a hearing for final court approval in November.
In addition to agreeing to pay $418 million to people who have sold homes in recent years, NAR also agreed to two rule changes: When agents list homes on the Multiple Listing Services databases, they’ll no longer be allowed to include the buyer agent’s compensation; and buyers will need to have written agreements with their agents.
The changes will likely go into full effect by Sept. 16, according to the New York Times. Early reports noted that rules could change as soon as July.
“It has always been N.A.R.’s goal to resolve this litigation in a way that preserves consumer choice and protects our members to the greatest extent possible,” NAR said in an e-mail statement following the approval. “There are strong grounds for the court to approve this settlement because it is in the best interests of all parties and class members.”
This latest development, of course, comes just weeks after a federal appeals court ruled that the Department of Justice can reopen an investigation into NAR, three years after the trade group settled related government antitrust claims.
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