The US Department of Justice has thrown doubt over a new way of paying for real estate brokers, raising concerns about a recent legal settlement that has left Realtors uncertain about how to negotiate pay without breaking the law. The DOJ’s objections have compounded the confusion in the industry, as real estate professionals are already adapting to new rules that were introduced in August.
The new rules, which were introduced as part of a $418 million settlement, aim to end the practice of homebuyers paying 5% to 6% commission fees to both their own and the sellers’ agents. While many Realtors have adjusted to the changes, the Justice Department has raised concerns about one of the key requirements: that buyers’ agents must discuss their compensation upfront and obtain a written agreement from clients before viewing properties.
The Justice Department has suggested that this requirement may raise antitrust concerns and is seeking revisions to the settlement. However, a Missouri federal judge has approved the settlement without making any changes.
The uncertainty has left many Realtors worried that they may still be at risk of antitrust lawsuits from the government, even if they follow the new rules. Some have expressed frustration with the new requirements, which they say are unclear and may not actually solve the problems that the settlement aimed to address.
Despite the uncertainty, real estate professionals are trying to adapt to the new rules, which also prohibit agents’ compensation from being listed on multiple listing services and require agents to enter into written agreements with buyers before showing them properties. The changes have been met with resistance from some in the industry, who feel that they are unworkable or unfair.
The outcome of the situation remains uncertain, leaving many Realtors feeling frustrated and uncertain about their future.
