Dear Members,

Real estate brokers and agents are among the most entrepreneurial and resilient business thinkers and change adapters. There is no question that the real estate industry is in the midst of significant change, and as we always have in the past, we will respond, adapt, and thrive.

For 145 years, the Greater San Diego Association of REALTORS® has helped our members pivot with the challenges and changes our industry has faced. Today is no different.  Rest assured that in every challenge there is an opportunity.  In most cases, the bigger the challenge – the bigger the opportunity.  Be ready to take advantage of new market opportunities.

A class-action lawsuit against the National Association of REALTORS® (NAR) challenged the common practice of listing brokers making offers of compensation to buyer brokers in local MLS broker marketplaces as contractually agreed upon by their sellers.

In response to this week’s jury verdict in the Sitzer/Burnett v NAR et al case, NAR has made it clear it will appeal the verdict and continue to pursue consumers getting comprehensive, equitable, transparent, and reliable home information. 

Now that a jury has found NAR and the other defendants liable for damages:

• NAR has issued a statement that they intend to appeal the verdict and bring motions to reduce the amount awarded by the jury.
• The plaintiffs may file for injunctive relief where the parties can submit briefs to the court arguing what kind of injunctive relief is appropriate. For example, the court could order changes to the process of making an offer of compensation.
• Overall, it is highly likely that there will be at least one round of appeals filed by the defendants.  This means a definitive ruling is not imminent. It will likely be some time before a final conclusion is reached.  However, now is the time to plan ahead and be prepared.

We will keep you informed about this case and other new and existing cases, including a new class action case already filed by Plaintiff’s attorneys following the Sitzer/Burnett v NAR et al verdict. We will work with members to minimize disruption to our industry regardless of the final outcome. 

Moving forward, SDAR will continue to offer numerous opportunities to keep you informed on industry changes and updates, with events such as our upcoming Broker Breakfast event on Tuesday, November 7. Events such as these provide discussions on the history of class-action cases challenging NAR’s Cooperative Commission Rule and on the next steps after the pre-trial settlements and verdict.

Also, please check our Education Calendar for dates of our new Buyer Representation training classes (next one is Nov. 6). While we can't predict the final outcome of these class action suits, or the courts, DOJ's or FTC’s influence on a future outcome, we can adjust our practices and continue to succeed.