Real estate industry braces for shake-up as new rules roll out

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The changes are coming about because the powerful real estate trade group, the National Association of Realtors, agreed in March to settle lawsuits in which sellers accused the group of running up fees. At the time, the group agreed to pay $418 million in damages, but it also agreed to change the way commission rules work — a change that will go into effect within the week.

With the new changes, now when someone wants to buy a house, they have to sign an agreement with an agent. Malta said the agreement also makes it so offers of compensation will no longer be allowed on multiple listing services — central databases used by Realtors to share details about homes for sale.

The jury, based in Kansas City, Missouri, found that not only NAR, but also Keller Williams Realty, and HomeServices of America conspired to inflate and maintain high commissions artificially.

 

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