NAR Is A Perpetual-Motion Lawsuit Magnet: The Download



A spate of recent lawsuits makes it clear the NAR’s legal woes are far from over. Where do they (and you) go from here?

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Each week on The Download, Inman’s Christy Murdock takes a deeper look at the top-read stories of the week to give you what you’ll need to meet Monday head-on. This week: A spate of new lawsuits makes it clear the NAR’s legal woes are far from over. Where do they go from here — and what should you do to protect yourself?

Despite all of the hand-wringing and pearl-clutching around the National Association of Realtors’ commission lawsuit settlement, which went into effect in most markets on Aug. 17 and will be finalized this November, it’s just the tip of the legal iceberg for the country’s largest trade group.

The organization recently said it would take steps to pivot its legal strategy following the exit of Chief Legal Officer Katie Johnson. Is it too little too late, beset as NAR is on all sides from consumers, the U.S. government, brokerages and agents?

Last week, Pennsylvania broker Maurice Muhammad filed suit against NAR, Pennsylvania Association of Realtors and Greater Lehigh Valley MLS for $5.6 million. At issue? The requirement that he be a Realtor to access the MLS.

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

These suits come in tandem with legal challenges from consumers and the Department of Justice, as well as legal questions surrounding the trade group’s Clear Cooperation Policy and challenges to its industry dominance from startup associations like American Real Estate Association.

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

As NAR continues to look for ways to C its A, you need to CYA as well. That means that, as an agent, you need to watch out for yourself and ask smart questions of your leadership. As a broker or team leader, you need to be aware of what your agents are doing and saying.

This week, Inman contributors offered insight on both perspectives so that you’ll feel confident when talking to buyers, sellers and colleagues.

Brokers, you’re accountable for your agents’ behavior

With more supervision layers required due to NAR’s settlement, consider these tasks, policy ideas and suggestions when updating your systems, compliance expert Summer Goralik writes.

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 switching brokerages or joining a team, it’s as much an interview for them as it is for you, writes Troy Palmquist.





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