Residential Real Estate Broker Commission Lawsuit

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Any Buyer Agent compensation(s) offered by a Seller, if any, must not be published anywhere.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
September 19, 2024

2023 – #1 Agent in Castle Rock (Total Transactions)
2023, 2022 – Top .5% of all Agents in Colorado
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2023, 2022 – Voted as one of the “Best Real Estate Agents in Colorado”
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Master Certified Negotiation Expert in Real Estate

Jim Garcia Overview:

 

Jim Garcia, a real estate agent in Douglas & Elbert County Colorado, is among the Top 1.5% of All Agents & Teams Nationwide. Having resided in the area for several years, he possesses valuable insights into potential challenges that may arise during transactions. A local agent is crucial for both residential home Buyers and Sellers. For instance, understanding the significant variations in taxes & HOA fees, weighing the pros and cons of different subdivisions, evaluating schools, growth areas, and more are essential. Brokers unfamiliar with the area might not grasp the nuances of the local market.

Jim has been a licensed Real Estate Agent since March 2007, specializing in residential transactions in Castle Rock, Castle Pines, Parker, Elizabeth, and nearby regions. With over 25 years of experience as a senior business executive, serving as CEO/COO, he brings expertise in construction, contract negotiations, intricate real estate deals, fix & flips/holds, 1031 exchanges, short sales, foreclosures, and investment properties.

His objective is to offer top-notch service and sound guidance to all his clients, enabling them to make informed decisions. This empowers them to secure the best possible deal with the most favorable outcome.

Jim is a real estate expert known for his local market knowledge and personalized approach. Clients value his dedication, attention to detail, and community involvement. With Jim, clients receive tailored strategies and support, even after close.

You can view a more detailed professional resume online at About Jim Garcia, and see what clients say about him and read his 250+ 5-Star Reviews.