The American Association of Realtors (NAR, in English) will eliminate its 6% home sales commission to put an end to several lawsuits that accuse it of inflating these remunerations, a decision that could significantly lower the costs of the Propierties sell.
In a statement, the NAR, which claims to be the largest trade association, reported that the agreement, subject to federal court approval, provides for the elimination of its commission rules and the payment of $418 million in damages.
According to housing experts cited by the New York Times, the change in the fee structure and the billions of dollars that will flow into the housing market as a result could lead to a housing market recovery.
In addition, it would also imply a significant reduction in the cost of selling homes in the United States, thus benefiting future homeowners.
The settlement responds to a host of lawsuits from home sellers who accused the organization that its rules forced them to pay excessive commissions.
Until now, the NAR required sellers to pay a fixed commission of 6% that is shared equally between the seller's agent and the buyer's agent. Although the organization said that this commission is negotiable, many experts argue that it was effectively fixed and made housing more expensive, according to CNN.
The agency's rules dictate that home sellers must pay their own agent and the buyers' agent, which the plaintiffs say prevents both sellers and buyers from negotiating lower prices.
Americans pay about $100 billion in real estate commissions each year, and U.S. agents have some of the highest standard commissions in the world, according to The New York Times.
Although the organization expressed its intention to appeal the lawsuits several times, it has finally given up: “Ultimately, continuing to litigate would have harmed members and their small businesses. “This agreement is the best we could achieve given the circumstances,” Nykia Wright, interim CEO of NAR, said in the statement.
The ruling on the organization's first lawsuit of its kind, filed by a group of Missouri home sellers, forced it to pay $1.8 billion last October.
The NAR represents more than 1.5 million members involved in all aspects of the real estate industry and has trademarked the word “realtor,” so in much of the country any agent must pay dues to the group to do their business. job.
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