What is the lawsuit about?
In the United States District Court for the Western District of Missouri, a court case was filed, Burnett et al. v. National Association of Realtors, et al. (NAR). Defendants includes NAR, Anywhere, RE/MAX, Keller Williams, and Berkshire Hathaway Home Services.
The lawsuit claimed that Defendants created and implemented rules that require home sellers to pay commissions to the broker or agent representing that buyer, and that caused home sellers to pay total commissions at inflated rates through anticompetitive and unlawful practices.
RE/MAX and Anywhere both paid to settle this suit. Anywhere and RE/MAX are not admitting any liability or that they did anything wrong. Both sides want to avoid the uncertainties and expense of further litigation.
This case and others are on-going. RE/MAX and Anywhere have been removed for any further litigation with respect to this matter.
Who is included in the class action claim and can I file a claim?
For Colorado, if you listed a home to be sold between March 6, 2015 and February 1, 2024 on Pike Peak MLS (Colorado Springs area) or REcolorado (Denver area) and you paid a commission, to ANY real estate brokerage firm in connection with the sale, you are eligible to file a claim.
If you want to submit a claim, it must be completed by May 9, 2025 at this link:
https://realestatecommissionlitigation.com
What are the effects for Buyers from this Lawsuit?
In Colorado effective 8/17/2024, a Buyer must sign a Buyer Agency Agreement (Exclusive Right to Buy Contract), in order to view a property. The contract can be for the single property, multiple properties, or encompassing a period of time. The contract also states the agreed upon Buyer Agent Commission and terms negotiated between the Buyer and Agent. This process must be completed prior to viewing any property.
Any Buyer Agent compensation(s) offered by a Seller, if any, must not be published anywhere. If the Seller offers any compensation to a Buyer Agent, that is a negotiated item in the Contract to Buy Sell.
What are the effects for Sellers from this Lawsuit?
Sellers have the right to negotiate compensation offered to a Buyer Agent during the negotiations of the overprice of the real estate for sale. As it has been in the past, The Listing Agent and the Seller will discuss a compensation to be offered to a Buyer Agent, or none.
If the Seller does not offer a Buyer Agent Compensation, the Buyer may be liable to pay their broker outside of the purchase contract.
In any event, the compensation offered will be confidential, not published anywhere, and should be written in the real estate contract.
Overall:
These changes can be significant when negotiating the price, terms, and who pays what fees in a real estate transaction beginning August 17, 2024.
Buyers and Sellers are advised to discuss these items in detail with your Real Estate Agent, so you understand the full impact of your contract when submitting an offer to purchase a real estate.
In these times, your best advisor should be a seasoned, knowledgeable real estate professional with years of experience. You should hire an Agent who understands the Colorado contracts in detail, has strong real estate and negotiating skills, and understands the new laws. If the contract and negotiations are not completed correctly, there could be dire consequences to the Seller, Buyer or either Agent with the Buyer Agent Commission.
If you have any real estate questions or if I can help in any way, please let me know.
Thank you,
Jim Garcia
RE/MAX Professionals
720-385-4497
Jimgarcia100@gmail.com
December 21, 2024