Realtors settlement brings confusion, relief to California’s real estate industry

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California Realtors say it’s too soon to decipher the impact of a proposed pact ending more than 20 antitrust lawsuits.

Members of Southern California’s real estate industry say it’s too soon to decipher the impact of the $418 million deal unveiled on Friday, March 15. The National Association of Realtors said Friday that it agreed to a new rule banning sellers from offering compensation to buyers’ agents through a Realtor-affiliated MLS, or home-listing database.

But it was unclear if that will end the decades-old practice of requiring sellers to pay buyers’ agents. A law firm that took part in the settlement hailed the agreement as “groundbreaking,” saying it could save consumers billions of dollars in broker fees. There was an element of relief at the Glendale Association of Realtors, one of 19 local Realtor associations named in a class-action lawsuit filed in January.VTA quest to seize San Jose site for BART station heads to court trial

The proposed effective date will be July 1 if the settlement gets court approval, although that — like everything else — is subject to change, Carter said. “The job is going to change significantly,” said Newport Beach broker Bill Cote, owner of Cote Realty Group. “I think you’re going to see a whole element of people come out and say that they are buyers brokers, and they’re only representing buyers. But the difficulty with that is getting the buyers to step to the plate to say that they’re going to pay the compensation to the buyer’s broker.”

 

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Realtors settlement brings confusion, relief to Southern California’s real estate industryLocal Realtors say it’s too soon to decipher the impact of a proposed pact ending more than 20 antitrust lawsuits.
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