A number of recent lawsuits make it clear that NAR’s legal troubles are far from over. Where do they (and you) go from here?
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Each week on The Download, Inman’s Christy Murdock takes a closer look at the week’s top stories to give you what you need to meet Monday head on. This week: A flurry of new lawsuits makes it clear that NAR’s legal troubles are far from over. Where do they go from here – and what should you do to protect yourself?
Despite all the hand-wringing and pearl-clutching in the commission of the National Association of Realtors, which began operating in many markets on Aug. 17 and will be completed in November, it is just the official tip of the iceberg for the country’s largest trade group.
The organization recently said it will take steps to establish its legal strategy following the departure of the Chief Legal Officer Katie Johnson. Is it too little too late, overwhelmed as NAR is on all sides from consumers, the US government, brokerages and agents?
Last week, a Pennsylvania merchant Maurice Muhammad filed a lawsuit against NAR, the Pennsylvania Association of Realtors and the Greater Lehigh Valley MLS for $5.6 million. In the story? A requirement to be a Realtor to access the MLS.
Muhammad’s lawsuit follows one filed by two Michigan sellers and an agent in August naming NAR, their state and local associations and Realcomp II, their MLS.
These suits include legal challenges from consumers and the Department of Justice, as well as legal questions about the trade group’s Clear Partnership Policy and challenges to its industry governance from start-up organizations like the American Real Estate Association.
MORE: NAR rival seeks agents for possible class action instead of resignation
As NAR continues to explore ways of its C of A, it needs CYA as well. That means, as an agent, you need to be self-aware and ask smart questions of your leadership. As a salesperson or team leader, you need to know what your agents are doing and saying.
This week, Inman contributors provide insight into both concepts so you can feel confident when talking to buyers, sellers and colleagues.
Brokers, you will report on the behavior of your agents
As additional layers of oversight are required due to the NAR settlement, consider these activities, policy ideas and suggestions when reviewing your systems, compliance professional Summer Goralik he writes.
New restructuring: Paying the buyer’s agent is only part of the challenge
35 questions your next salesperson hopes you don’t ask
Whether you’re thinking of switching brokerages or joining a group, it’s as much an interview for them as it is for you, he writes. Troy Palmquist.
