08/21/2024
For those of you who have heard about the changes in the Real Estate industry, I am sharing this summary prepared by my Broker.
We want to assuage your concerns by being a resource for any questions you may have. Thank you for your trust, confidence and business!
Dear Valued Customer(s):
On behalf of The Signature Real Estate Companies, I want to take this opportunity to provide you with some brief perspective on all the news you likely have been reading and hearing about concerning the Federal Class Action Commission Lawsuit affecting the real estate industry and the resulting various industry changes. First off, please let me share with you the background on the subject. The National Association of REALTORS® (“NAR”) and some of largest brokerage companies in the United States were faced with class action lawsuits. The basis for the suits involved commissions that were charged by brokers, how those commissions were shared in transactions and the workings of the industry’s Multiple Listing Service (“MLS”) database. Following years of back and forth the matter eventually went to trial in the second half of 2023 in Missouri Federal Court. In the jury trial, the plaintiffs prevailed and were awarded over $1 billion in damages. NAR entered into a Settlement Agreement on this case, which included various practice changes. REALTORS® nationwide must follow these practice changes. The Signature Real Estate Companies is following these practice changes, which include: • The industry wide use of “Buyer Representation Agreements” commonly referred to as “Buyer Broker Agreements.” Before we begin working with a potential buyer, we will present them with a form of engagement agreement that explains the services that we provide as professionals and how we accept compensation. This agreement must be signed before touring any properties. • Customers will receive the following notice “BROKER COMMISSIONS ARE NOT SET BY LAW AND ARE FULLY NEGOTIABLE.” This should come as no surprise as commissions have ALWAYS been negotiable in our industry. In some cases we are compensated by sellers and landlords, in other cases we are compensated by buyers and tenants and in some instances we are compensated by a combination of sellers, landlords, buyers and tenants, depending upon the unique terms and details of each transaction. • Historically, REALTORS® were able to use our local MLS database to learn a great deal of information about individual property listings including the amount, if any, of compensation being offered by a Listing Broker. That is no longer the case. All offers of compensation have been removed from all MLS systems. Brokers will now negotiate their compensation off of the MLS with transparency to the consumer, and we have a host of new tools, disclosures and strategies to effectuate those negotiations. The key is that compensation will now be MUCH more transparent for customers and they should have a much clearer understanding of who, if anyone, is paying compensation and in what amount, if any. The Signature Real Estate Companies’ commitment to providing exceptional service and unparalleled results for a fair price remains unchanged. For more than 18 years, our more than 1,000 team members have been dedicated to helping our customers. Our team has been fully trained on all of the new processes and procedures in the industry and we have been equipped with some of the most powerful new technology available to help our customers including increasing exposure to seller listings. We are pleased with the industry changes as we feel that they will elevate the level of professionalism for all REALTORS® and provide for a more productive and transparent negotiation environment for our customers. Ultimately, we promise you the very best real estate experience in the nation and we want to assuage your concerns by being a resource for any questions you may have. Thank you for your trust, confidence and business and please feel free to reach out to me or your Signature agent for further discussion.
SignatureRealEstateCompanies.com Ben G. Schachter REALTOR®, LCAM, GRI Broker-President & Licensed Real Estate Instructor
The Signature Real Estate Companies
Mobile: 561.302.9099 | Private Office: 561.478.4567 | E-Fax: 561.282.0866
Send a message to learn more
