Sitzer-Burnett vs. NAR Lawsuit

Resources for Brokers:
SITZER/BURNETT vs. N.A.R. et al

This document is intended to provide general information and is not to be construed as legal advice. It is not a substitute for obtaining legal advice from a qualified attorney regarding individual situations or concerns. Any reliance on the information contained herein is at the reader’s own risk. No action should be taken based solely on the information provided in this document and while every effort has been made to ensure the accuracy of the information provided, no warranties or representations are made regarding the completeness, accuracy, or reliability of the information. Any information submitted or communicated in connection with this document by others via this page should be treated as privileged. By accessing or using this document, the reader acknowledges and agrees to the terms of this disclaimer. Readers are encouraged to consult with a qualified attorney for advice tailored to their specific circumstances. 

Sorry, that is just the “Sitzy” world we live in!

Conversation points the day after the verdict from a mastermind with brokers from across the country.

Is this a Crisis or an Opportunity?

NAR Settlement Fact Sheet - As of April 2nd

Powered By EmbedPress

Who is covered in this settlement:

Powered By EmbedPress

NAR settlement overview:

Powered By EmbedPress

Estimated timeline for the lawsuit:

Powered By EmbedPress

Financing facts related to the settlement:

Powered By EmbedPress

Want More Insight?

Powered By EmbedPress

Be prepared and share your direction

Updates from NAR on the Suit 10/31/23:

Shared Addendum for Reference from Wisconsin
Duane Murphy
Broker/Owner

Powered By EmbedPress

Shared contract and special stipulations from Jeff Farmer Broker/Owner in Georgia

Powered By EmbedPress

Powered By EmbedPress

These shared resources are for reference only and should be reviewed and approved by the appropriate parties before being used. Their relevancy, permission of use, and appropriate use will vary based on factors including but not limited to state, association(s), and the your needs of your individual brokerage.

NAR FINDING OF FACTS AS OF 03/20/24

Powered By EmbedPress

We have discussed how the State of Washington has done a great job staying ahead of some of this. Here is a copy of the State's Buyer Agency Document:

Powered By EmbedPress

Here are a few headlines that are driving public opinion:

“NAR to shed 1M members if shared commission banned,
analysts say”

“NAR agrees to sweeping changes in $418M commission

 

settlement and this is samples of what the news is saying….without getting too specifc as to what is being written:

  1. “NAR Agrees to Settlement with DOJ: What it Means for Real Estate Agents”

    “DOJ and NAR Reach Deal: Implications for Competition in Real Estate Market”

    “Settlement Reached: NAR to Address Antitrust Concerns”

    “DOJ and NAR Settlement: Changes Coming to Real Estate Industry”

    “NAR’s Agreement with DOJ: A Win for Consumer Choice?”

    “Antitrust Crackdown: NAR’s Pledge to Reform Practices”

    “Breaking News: NAR’s Concessions to DOJ in Antitrust Case”

    “DOJ and NAR Close to Agreement: What Brokers Need to Know”

    “NAR Settlement Sends Shockwaves: What’s Next for Real Estate Agents”

    “Antitrust Allegations Resolved: NAR’s Path Forward”

What does the DOJ required "Clear Compliance" have to do with Sitzer/Burnett? Maybe a lot more
than you think!

Navigating the Intersection: Clear Cooperation Policy and Sitzer/Burnett Lawsuit in Real Estate

In the realm of real estate, the landscape is constantly evolving, driven by the need for fairness, transparency, and ethical conduct. Two significant developments have emerged in recent times, shaping the way agents operate and interact within the industry: the NAR Clear Cooperation Policy and the Sitzer/Burnett lawsuit. While both initiatives aim to uphold the integrity of the market, a critical examination reveals a nuanced interplay between them.

At the heart of the matter lies the concept of cooperation, a fundamental principle in real estate transactions. The Clear Cooperation Policy, established by the National Association of Realtors (NAR), mandates timely and transparent disclosure of property listings to the multiple listing service (MLS). This policy seeks to ensure equal access to property information for all parties involved, fostering a level playing field and preventing unfair practices like pocket listings.

Conversely, the Sitzer/Burnett lawsuit challenges certain aspects of cooperation, particularly concerning the relationship between listing agents and buyer’s agents. The lawsuit suggests that decoupling the cooperation between these parties could promote the best interests of all involved. This assertion raises thought-provoking questions about the dynamics of cooperation and the balance of interests in real estate transactions.

On one hand, the Clear Cooperation Policy underscores the importance of shared information and collaboration among agents, promoting transparency and fairness in the market. By requiring listings to be promptly submitted to the MLS, the policy aims to maximize exposure for properties, benefiting both sellers and buyers.

On the other hand, the Sitzer/Burnett lawsuit introduces a new perspective, suggesting that reevaluating the traditional model of cooperation could lead to improved outcomes for all parties. By potentially decoupling the compensation cooperation between listing agents and buyer’s agents, the lawsuit aims to address concerns related to anti-competitive behavior and ensure that the interests of buyers, sellers, adequately represented. But will that really be the case when cooperation is not fostered by fair compensation?

Navigating the intersection between these two initiatives requires careful consideration and a nuanced understanding of the underlying principles at play. While the Clear Cooperation Policy emphasizes the importance of transparency and collaboration with property details, the Sitzer/Burnett lawsuit challenges conventional notions of cooperation to promote fairness and efficiency in real estate transactions.

Ultimately, both the Clear Cooperation Policy and the Sitzer/Burnett lawsuit share a common goal: to uphold the integrity of the real estate market and protect the interests of all parties involved. As the industry continues to evolve, it is essential for agents to stay informed and adapt to changing dynamics, ensuring that they operate ethically and effectively in serving their clients’ needs.

The correlation between the Clear Cooperation Policy and the Sitzer/Burnett lawsuit underscores the complexities inherent in the real estate industry. By critically examining these developments and their implications, agents can navigate the evolving landscape with integrity and professionalism, ultimately enhancing the trust and confidence of clients and stakeholders alike.

Here is the scenario:

Before Clear Cooperation the seller and listing agent could (based on MLS rules, state rules, association rules, ect.) say that the listing agent could market directly to the public in an attempt to:

procure a buyer and potentially save the seller money

potentially allow the listing agent to find the buyer with out an agent

potentially allow the listing agent to incentivize a buyer to work with them directly instead of their agent

As well as a host of other options. DOJ and NAR said that cooperation was in the best interest of all parties and created a fair and level playing field for buyers and the market by requiring Clear Cooperation and 

Along comes Sitzer/ Burnett. Now the conversation is that cooperating with clarity between agents is not a good idea specifically related to but not solely related to compensation. At this point the conversation seems to be revolving around the commission the seller and listing agent negotiated not being able to be cooperated with hundreds of agents who are working with thousands of buyers which benefits the seller and moreover the real estate marketing in general. Clearly a restriction on cooperation. Now the commission to receive the service of representation is going to be thrown onto the shoulders of the buyer who is already bearing the bulk of the cost associated with the purchase of the property. Before the seller and the buyer were cooperating to ensure the benefits of home ownership were available to the buyer with the seller contributing to the overall cost that the buyer would incur to ensure they had representation. 

The proposal on the table seems to shift the burden completely to the buyer. Homeownership will slow with and this is a new burden to affordability. However, there is good news, we can expect more lawsuits as unsuspecting buyers work with agents that have a fiduciary responsibility to seller realize after the closing that they were on their own the entire time Get ready for some serious Caveat Emptor!

Visit our Blog for more insight on everything brokerage growth!

The verdict is in and now the excitement starts

The verdict is in and now the excitement starts

THE JUDGE AND JURY HAVE SPOKEN! Maybe it's time to elevate your brokerage's market reputation through a Client-Centric perspective.In the ever-evolving world of real estate, it's essential to adapt and embrace changes. The recent Sitzer/Burnett verdict has brought several opportunities to light for brokers to enhance their market reputation. As…
Unpacking KPI’s and Identifying Essential Metrics

Unpacking KPI’s and Identifying Essential Metrics

Grow Your Real Estate Brokerage: Unpacking KPI's and Identifying Essential Metrics Are you looking to grow your real estate brokerage? Whether you’re a new or experienced broker, the key to success lies in having the right metrics and KPIs in place. Knowing which metrics are essential to your success, and how to measure and track them, is essential for any real estate broker looking to get ahead. In this article, we’ll examine which key performance indicators (KPIs) you need to focus on and how to identify the most important metrics for your business. With the right KPIs in place, you’ll be able to track your performance, optimize your processes, and measure your success. Let’s dive in and take a look at how to grow your real estate brokerage by unpacking KPI’s and identifying essential metrics.  What are Key Performance Indicators (KPIs)? A key performance indicator (KPI) is a metric that measures an aspect of an organization's performance. These metrics are used to track, monitor, and benchmark a company's performance and progress towards achieving its goals. KPIs can be used to measure the performance of the entire organization, or specific departments or processes within it. KPIs can be used to measure financial performance, customer satisfaction, and operational efficiency.  KPIs are important for any business looking to optimize their processes and improve performance, and for real estate brokerages, they are especially important. By tracking the right metrics, a real estate brokerage can ensure that they are on the right track to achieving their goals and maximizing their profitability.  Benefits of using KPIs include: ∙Improved decision making: KPIs can provide real-time data to help you make informed decisions. ∙Improved efficiency: KPIs can help you identify areas of inefficiency and create processes to improve them. ∙Better communication: KPIs can be used to communicate performance to all stakeholders, both internally and externally. ∙Increased motivation: Having KPIs in place can serve as a source of motivation for employees and increase their performance.  Examples of KPIs for a Real Estate Brokerage:When it comes to real estate, there are many different KPIs that can be used to measure performance. These KPIs can be divided into three categories: financial, operational, and customer (your agents).  Financial KPIs measure a company's financial performance. Examples of financial KPIs for real estate brokerages include gross profit margin, net profit margin, return on investment, and total revenue. These KPIs help to measure a brokerage's financial health and track its performance.  Operational KPIs measure the efficiency of a brokerage's operations. Examples of operational KPIs include average time to close a transaction, lead conversion rate, and cost per lead. These KPIs can help a brokerage identify areas of inefficiency and optimize their processes.  Customer KPIs measure customer (agent) satisfaction and/or retention. Examples of customer KPIs include retention ratio, agent training and meeting attendance, number of referrals your agents receive based on customer satisfaction, and agent lifetime value. By tracking these KPIs, a brokerage can ensure that they are providing not only the services that an agent needs but what they want as well.   Measuring Your Success Once you have identified the KPIs that you want to measure, the next step is to track and measure them. The best way to do this is to create a dashboard where all of your KPIs can be tracked in one place. This dashboard should be easy to read and understand, so that all stakeholders can quickly understand the performance of the business.  Using a dashboard, you can monitor your KPIs on a daily, weekly, or monthly basis. This will allow you to quickly identify any changes in performance and take action if necessary. Additionally, you can use the dashboard to compare your performance to benchmarks and other businesses in the industry. This will help you identify areas of improvement and areas where you are outperforming the competition.  In summary Having the right KPIs in place is essential for any real estate brokerage looking to grow and maximize their profitability. By tracking these KPIs, you will be able to track your performance, optimize your processes, and measure your success. With the right KPIs, you will be able to make informed decisions and identify areas of improvement. So, if you’re looking to grow your real estate brokerage, start by unpacking KPI’s and identifying essential metrics. 
How to get your agents to help you recruit

How to get your agents to help you recruit

How to get your agents excited about helping you recruit! Is getting an agent to refer a recruit to you an easy task? After all, they have close relationships with the REALTORS® in the market because they work with them regularly, right?  So why wouldn’t they help you recruit? The main…

Here are some more resources because as always:

"We just want to be part of your win"

Mastermind with Brokers from across the country.

Register here for Brokerpreneur Not So Secret Society!

Watch our 3 Part Recruiting Series

Dotloop asked us to create a simple recruiting series to help brokers attract Top talent!

Schedule a Call to learn about what we do!

This 10 minute overview will make it clear of what Brokerpreneur can do to help you grow!

Tune in to the Top Ranked Brokerage Growth Podcast

Register here for Brokerpreneur Not So Secret Society!

Watch Matt on a panel for Entrepreneur

Matt was asked to join a panel to discuss forecasting business trends after the pandemic

About our C.E.O.
Matt Vigh

The owner of this website has made a commitment to accessibility and inclusion, please report any problems that you encounter using the contact form on this website. This site uses the WP ADA Compliance Check plugin to enhance accessibility.

Test Popup

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.