Burnett v NAR Verdict Resources
October 31, 2023 - Statement from NAR
After an 11-day trial in the case of Burnett v. NAR et al, the eight-person jury in a Kansas City, Mo., federal courtroom came back Tuesday and found NAR and other corporate defendants liable in the case.
NAR had presented in court that its rules prioritize consumers, support market-driven pricing and promote business competition. This matter is not close to being final as NAR will appeal the jury’s verdict. It will likely be several years before this case is finally resolved.
NAR stands by the fact that its guidance for local MLS broker marketplaces ensures consumers get comprehensive, equitable, transparent and reliable property information and that brokerages of any size, service or pricing model get a fair shot at competing. NAR will continue to focus on our mission to advocate for homeownership and always put consumer interests first.
Frequently Asked Questions
The complainants alleged that property sellers are damaged when their listing broker offers to compensate the buyers’ representative. The lawsuits allege that various NAR rules and our members’ adherence to those rules have led to artificially fixed and inflated commissions being paid to real estate professionals.
While the verdict is disappointing, we’re currently ‘business as usual.’ NAR has emphasized two things for many years, and these two facts remain:
- One is the use of buyer representation agreements, which maximize transparency by putting all agreements in writing to ensure clarity and understanding, as all members are obligated to do pursuant to the NAR Code of Ethics. These agreements formalize the professional working relationship with clients and detail what services consumers are entitled to and what the buyer agent expects from their client in return.
- Second, it’s also imperative for members to continue to express the following:
- Commissions are negotiable and set between brokers and their clients
- Explain how local MLS Broker marketplaces promote equity, transparency, and market-driven pricing for consumers and
- Persistently communicate the incredible value agents who are REALTORS® provide.
- Members need to continue to discuss compensation and utilize our buyer agency and exclusive right to list agreements
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