Gary Acosta, NAHREP CEO and Co-Founder, Comments on NAR Settlement
The National Association of Realtors settled a class action lawsuit on broker compensation, pending court approval. NAHREP releases a statement supporting broker cooperation and emphasizing fair representation for consumers.
By NAHREP
March 15, 2024
The National Association of Realtors reached terms with plaintiffs to settle the class action broker compensation lawsuit. The settlement still needs to be approved by judge in the case. Our media partners at Housingwire posted a summary of the settlement.
Several of the most reputable real estate research groups in America predict that Hispanics will account for the large majority of net new homebuyers in the coming years. Because of this, NAHREP has been closely following this lawsuit and has made several public statements on potential outcomes, especially as they pertain to buyers’ agents and first-time home buyers.
NAHREP CEO, Gary Acosta released the following statement to the press this morning
The plaintiffs and proponents of these lawsuits claim they represent consumers but in reality, they have been nothing more than vicious attacks on first-time home buyers and small businesses. In the settlement, NAR made the right choice by prioritizing the protection of its members from unfair liability, and preserving the option of broker cooperation; which reduces the financial burden on minorities and first-time homebuyers.
Gary Acosta, Co-Founder and CEO, National Association of Hispanic Real Estate Professionals (NAHREP)
A major agreement within the settlement is that broker cooperation would remain legal, but cannot not be expressed or negotiated in the MLS. Broker cooperation can, however, be negotiated outside of the MLS and a seller’s willingness to cover buyers’ agent commissions can be explicitly expressed on broker websites, and other private platforms. From NAHREP’s perspective, this deal point is not ideal for agents or consumers, but obviously better than an outright ban on broker cooperation.
NAHREP is currently exploring a number of ways it can assist members on how to best navigate through this changing environment in our industry, and is committed to ensuring consumers, especially those with modest means, continue to receive fair and competent agent representation, and access to the American dream of owning a home.