What is the lawsuit about?
NAR and four brokerage defendants were sued in lawsuits filed in Missouri (plaintiff “Burnett”) and Illinois (plaintiff “Moehrl”) alleging commission rates are too high, buyer brokers are being paid too much and NAR’s Code of Conduct and MLS Handbook along with the corporate defendants’ practices lead to set pricing.
Explore resources for your clients and yourself below!
Trial Updates
Update 11/1/23
On Tuesday, October 31, NAR and four brokerage defendants were found liable in the Burnett et al v. National Association of REALTORS® et al lawsuit. NAR plans to appeal the verdict and stands by its guidance for local MLS broker marketplaces to ensure consumers get comprehensive, equitable, transparent and reliable home information and that brokerages of any size, service or pricing model get a fair shot at competing. NAR will continue to focus on its mission to advocate for homeownership and always put consumer interests first. For a statement on the trial from NAR, click here.
Update 10/16/23
The Burnett et al v. National Association of REALTORS® et al began on Monday, October 16.
As of Monday morning, jury selection is scheduled to take place, and opening statements are scheduled for Tuesday, October 17. The trial will run through November 3, and a verdict is expected the week of November 6. You can find additional information in REALTOR® Magazine’s recent article here.
For the most up-to-date information on the trial, visit competition.realtor.
NAR’s Position
NAR has stated its position in response to these allegations: In response to the marketplace, NAR has developed guidance for local MLS broker marketplaces that supports consumers getting comprehensive, equitable, transparent and reliable home information while brokerages of any size, service or pricing model get a fair shot at competing. The result is an efficient model for brokers to serve sellers and buyers and to enable market-driven pricing and buyer representation for consumers. REALTORS® adhere to a strict Code of Ethics and bring incredible expertise to guide consumers through the financial, legal and community complexities of buying or selling a home.
Resources For your Clients
Each of us has a role to play in educating consumers about how local MLS broker marketplaces:
- Provide market-driven pricing and opportunity for consumers.
- Level the business playing field.
It is important to tell and share stories about the value of REALTORS®. Use materials and shareable resources from competition.realtor to continue to demonstrate the value you bring to the transaction.
Resources to share:
- Why Hire a REALTOR®
- Local Broker Marketplaces Make Home Fantasies Realities
- Local Broker Marketplaces in Action
- Economics of Buying a Home
- What’s at Stake in the Sitzer/Burnett Trial
Resources For Chicago REALTORS®
We’re continuing to share resources and articles to ensure you’re in compliance with NAR’s guidelines. Check them out below.
- Are You Still Advertising Your Services as Free? from Chicago REALTOR® Magazine
- On October 31, 2023, MRED offered additional flexibility for users to allow them to enter $0 or 0% in the compensation field for all listings. Read their FAQs about the change here.