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Home»Real Estate»NAR Is A Perpetual-Motion Lawsuit Magnet: The Download
Real Estate

NAR Is A Perpetual-Motion Lawsuit Magnet: The Download

October 28, 2024No Comments3 Mins Read
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A series of recent legal battles indicates that the NAR’s legal challenges are far from resolved. What steps should they (and you) take next?

Whether you’re refining your business model, mastering new technologies, or finding strategies to capitalize on the next market wave, Inman Connect New York will equip you to take bold steps forward. The Next Chapter is on the horizon. Be a part of it. Join us and thousands of real estate leaders on Jan. 22-24, 2025.

Every week on The Download, Inman’s Christy Murdock delves deeper into the top-read stories of the week to give you the insights you need to tackle Monday head-on. This week: A series of new lawsuits highlight the ongoing legal challenges facing the NAR. What steps should they take next — and how can you protect yourself?

Despite the commotion surrounding the National Association of Realtors’ commission lawsuit settlement, which took effect in most markets on Aug. 17 and is set to be finalized in November, it’s just the beginning of legal troubles for the largest trade group in the country.

The organization recently announced plans to change its legal approach following the departure of Chief Legal Officer Katie Johnson. With challenges from consumers, the U.S. government, brokerages, and agents, is it too little too late for the NAR?

Last week, Pennsylvania broker Maurice Muhammad filed a $5.6 million lawsuit against NAR, Pennsylvania Association of Realtors, and Greater Lehigh Valley MLS over the requirement to be a Realtor to access the MLS.

Muhammad’s lawsuit follows one filed by two Michigan brokers and an agent in August against NAR, their state and local associations, and Realcomp II, their MLS.

These legal challenges coincide with lawsuits from consumers and the Department of Justice, as well as questions surrounding the trade group’s Clear Cooperation Policy and competition from startup associations like American Real Estate Association.

EXTRA: NAR rival seeks agents for possible class action over Clear Cooperation

As NAR strategizes its next moves, it’s crucial for you to protect yourself. As an agent, ask the right questions and stay informed. As a broker or team leader, be aware of your agents’ actions and communications.

This week, Inman contributors offer insights from both perspectives to empower you when engaging with buyers, sellers, and colleagues.

Brokers, you’re responsible for your agents’ conduct

With additional supervision requirements due to NAR’s settlement, compliance expert Summer Goralik provides tasks, policy ideas, and recommendations for updating your systems.

The new redlining: Paying a buyer agent is just part of the challenge

35 questions your next broker hopes you don’t ask

Whether you’re considering changing brokerages or joining a team, real estate expert Troy Palmquist emphasizes the importance of interviewing them as much as they interview you.

Download lawsuit Magnet NAR PerpetualMotion
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