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Class-Action Suit Over Buyer’s Rep Compensation: Update + Ask

Published by NAR General Counsel Katie Johnson on April 27, 2022:

Three years ago, in March 2019, the National Association of REALTORS® (NAR) and four corporate defendants were sued in class-action lawsuits filed in Missouri and Illinois, alleging that home sellers have been damaged because their listing broker compensates the buyers' representatives. These 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.

Class-action litigation is long and arduous, and we have been keeping you and your associations updated on relevant milestones as they have transpired over the years. We have also been asking you to do what you can to help us prevail in the court of public opinion. Now it is time for another update, and another ask.

***NAR Litigation Update ***

The “Leeder” attempted class action lawsuit filed on behalf of buyers claiming they were harmed by the rule where listing brokers offer to compensate buyer agents, HAS BEEN DISMISSED by the federal court. Good news!

We will keep you updated as new legal developments continue.

IAR Forms Video Series

The IAR Legal team has been working hard to keep you in-the-know by creating a series of videos to answer some of the frequent questions REALTORS® have regarding many of our forms. Catch up on past videos by going to our website. (Website login help: username = NRDS #, password = last name in all lower case.) Got a forms question? Ask your Managing Broker to call the IAR legal hotline: 1-800-444-5472. Your Managing Broker can authorize you to contact the hotline as well.

Important Reminder: IAR forms are for IAR members only. We will prosecute any unauthorized user or supplier of the forms to an unauthorized user.

Research

Buyers/Sellers Want/Need/Appreciate You

Did you know? Each year, IAR purchases an oversample of the NAR Profile of Home Buyers and Sellers. This means researchers take a deeper dive into Indiana, talking to Hoosiers who recently bought or sold a home. And guess what? They want, need, and appreciate a full-service real estate professional. In 2021:

89% of home buyers purchased through a real estate professional
For 53% of buyers, help to find the right home was what they wanted most from their real estate professional
89% of home buyers would use again or recommend their real estate professional
For 80% of sellers, a broad range of services and management of most aspects of the sale was what they wanted most from their real estate professional
81% of home sellers listed their home on the Multiple Listing Service
The typical seller has recommended their real estate professional twice since selling their home; 42% of sellers have recommended their real estate professional three or more times
75% of sellers said they would definitely recommend, and 16% said they would probably recommend their real estate professional
Only 7% of home sellers used the For-Sale-By-Owner (FSBO) method
Less than 1% of home sellers worked with an instant buyer (iBuyer)

There is so much more to this report that will help your business. Check it out here. Feel free to use the data as you see fit.

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Capitol and Market. It’s not only our address but also what we do. IAR backs you at the state Capitol and works to keep REALTORS® at the center of their local market. This monthly newsletter will report on these efforts, as well as all the other information you’re entitled to as a member.

Add news@indianarealtors.com to your address book and be sure to let your local association know when you change email addresses (that’s where we get your contact). Thank you for reading and thank you for your membership.

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