Texas REALTORS® Lawsuits – Texas REALTORS®-2021十大正规彩票app

Texas REALTORS® has been named in two lawsuits, QJ Team et al v Texas Association of Realtors et al and Martin et al v Texas Association of Realtors et al. Several local associations of REALTORS® and real estate brokerages in Texas have been named as co-defendants. These lawsuits are two of several copycat lawsuits across the country that have been filed in the wake of a verdict against NAR and other corporate defendants in the case of Burnett v. NAR et al. Texas REALTORS® expected claims like this to be filed after the verdict was returned in Burnett v. NAR et al. NAR has indicted that it will appeal the decision in the Burnett lawsuit.

Access all PDFs about compensation and the lawsuits.

Texas REALTORS® stands by the value of the professional expertise that its members provide to their clients. We are reviewing the filing and will respond to it in court.

Download Lawsuit Factsheet

NAR maintains—and Texas REALTORS® agrees—that the practice of cooperative compensation makes efficient, transparent, and accessible marketplaces possible. Sellers can sell their home for more and have their home seen by more buyers, while buyers have more choices of homes and can afford representation. There are aspects of this litigation that Texas REALTORS® is unable to discuss, but the association will provide information and updates to members that we can as soon as we are able.

Texas REALTORS® disagrees with the assertions made in these lawsuits.

The lawsuits allege an antitrust conspiracy that suppresses competition and inflates fees paid by real estate consumers. Texas REALTORS® vigorously disagrees with those assertions.

Jump to FAQs about the lawsuits

Texans have numerous choices when it comes to how they choose to buy and sell properties:

Buyers and sellers can choose to buy or sell homes without any assistance from a licensed broker.
They can hire licensed brokers who are not members of Texas REALTORS®.
They can hire licensed brokers who are members of Texas REALTORS®.

There is no set fee or fee structure for hiring a REALTOR® or placing a property into an MLS.

Brokerage firms establish their own fees and fee structures. They may charge any amount they choose and can charge a commission, a flat fee, an hourly fee, or a fee for specific services, or any other legal means to be compensated.

Share this factsheet about broker compensation with your clients and prospects:

Download Commissions Factsheet

Texas REALTORS® forms and agreements between brokers and clients clearly and effectively outline compensation.

These forms create more transparency so that all parties know who is being compensated, how they are being compensated, and how the compensation is determined.

Download Compensation FAQs

Jump to FAQs about compensation

NAR provided resources for members and local associations.

Members: Read key messages about antitrust issues and commissions
Local associations: Educate your leaders and staff about antitrust issues

FAQs About Compensation
- Do I have to change the fees that I charge?
  
  Brokers are not required to change their fees because of the lawsuit.
  
  Remember, there are no association or MLS policies that set broker compensation. Each brokerage independently determines what fees they will charge and to what extent they are willing to change their fees when someone wants to negotiate.
  
  It’s important for brokerages to be completely transparent about their fees. Consumers should fully understand what you charge, why you charge that amount, and the value you bring to your clients and the transaction.
  
  Share the “Texas REALTORS® Guide to Broker Commissions in Real Estate Transactions” flier. This flier is intended to be shared with consumers and is a good way to start a conversation about commissions.
- Can listing brokers still offer cooperative compensation to other brokers in the MLS?
  
  Yes. Listing brokers may offer compensation to cooperating brokers. There has not been a court ruling or change in NAR policy that impacts that.
- What should we tell our clients about cooperative compensation?
  
  Sellers need to understand that offering cooperative compensation is not required.
  
  But brokers should also discuss the benefits of cooperative compensation. Many buyers don’t have the ability to pay their broker out-of-pocket on top of the down payment and other closing costs. By offering cooperative compensation, the seller expands the pool of potential buyers interested in their property, which can often lead to more offers with terms favorable to the seller.
  
  Once fully explained, decisions regarding cooperative compensation are made by the seller and listing broker and should be included in the terms of a listing agreement.
- Does that mean the seller and their listing broker can refuse to offer compensation to the buyer’s brokers?
  
  Yes. There is no association or MLS policy that requires any set amount of compensation. The MLS policy requires the listing broker to specify the amount of compensation being offered. If the seller and listing broker decide that no compensation will be offered, then that’s what should be specified in the MLS. Some MLSs allow you to enter $0. Other MLSs require a nominal positive amount to be entered of at least one dollar or one cent, which is effectively $0. Check with your local MLS about which option they have adopted.
- If $0 is listed in the MLS, can a buyer’s agent still negotiate compensation with the listing broker?
  
  Absolutely. Regardless of what compensation is being listed in the MLS, the listing broker and cooperating broker can always negotiate something different.
  
  The Code of Ethics and MLS rules prohibit listing brokers and buyer’s brokers from attempting to coerce the other side into changing the offered compensation. But there is no policy that prevents listing brokers and cooperating brokers from mutually agreeing to a different amount from what’s on the MLS.
- How can a buyer’s agent negotiate compensation in compliance with the Code of Ethics?
  
  If a buyer is interested in a property with $0 cooperative compensation, the buyer’s agents can reach out to the listing broker to negotiate before submitting the offer. Whatever the results of the negotiation, whether there is a change in compensation or not, the buyer’s agent must discuss the situation with the buyer and let the buyer decide what they want to do.
- If both sides agree to change the MLS compensation, do we need to sign a written agreement?
  
  Yes. You can use the Registration Agreement between Brokers (TXR 2402). The registration agreement can be used to modify the compensation listed in the MLS.
- Will $0 cooperative compensation become the norm?
  
  Consumer choice and the free market determine what compensation model is used most often. The MLS rules allow $0 cooperative compensation as an option. However, offering compensation through the MLS is a time-tested and proven option that exposes a seller’s property to a wide audience of potential buyers. It’s an efficient way for brokers to be paid in a manner that benefits both buyers and sellers.
- How can a buyer’s agent help protect that they get paid?
  
  Use written buyer representation agreements.
  
  If a buyer has not signed a buyer’s representation agreement and the buyer is interested in a property with $0 cooperative compensation, the buyer’s agent may be in a situation where no one has agreed to pay the buyer’s agent. A written buyer representation agreement will help protect the buyer’s broker.
  
  Under the Texas REALTORS® Residential Buyer/Tenant Representation Agreement (TXR 1501), the buyers agrees to pay their broker a negotiated fee. It goes on to say that the broker will attempt to receive that fee from the seller/listing broker. But if the broker is unable to receive that fee from the seller/listing broker, the buyer is still responsible for paying the broker’s fee.
FAQs About Lawsuits
- Is there anything REALTORS®, brokers, local associations, or MLSs need to do differently because of the Burnett verdict or these lawsuits?
  
  These suits don’t change the many choices buyers and sellers have when deciding to buy or sell their home. They can choose to hire a real estate agent who is a REALTOR®, to hire someone else, or to do all the work themselves. As a REALTOR®, you can continue expressing to clients, friends, and family that compensation arrangements (including commissions) are, and have always been, negotiable and set between a broker and their respective client.
  
  You should continue to use your listing and buyer agreements to help clients understand exactly what services and value you are providing and how much you charge.
- What can REALTORS® tell clients about these suits?
  
  These suits don’t change how you do your business. The bottom line is that compensation will continue to be negotiable and set between a broker and their respective client, as it always has been. REALTORS® will always be there to guide clients through the financial, legal, and other complexities of buying and selling a home. Access information and materials you can leverage that cover these points.
- What if the media asks me questions about these lawsuits?
  
  Media inquiries on behalf of Texas REALTORS are being fielded by David Gibbs via email or 512-826-0754.