PDX Real Estate EP159: Unpacking the DOJ-NAR Settlement: Compliance and Transparency with RMLS CEO Kurt von Wasmuth

One of our favorite guests, Kurt von Wasmuth, President and CEO of RMLS, is here to talk about the latest industry upheavals.

Kurt, a frequent guest and one of our biggest advocates, will help clear up some of the confusion and questions about this process.

For years, MLS systems have provided data about properties for sale along with the compensation structure from listing brokers to buyer brokers.

In 2019, the DOJ filed a civil antitrust lawsuit against NAR, alleging that certain rules and policies of NAR were anticompetitive and hindered fair competition in the real estate market.

There was a settlement agreement in 2020 to help promote more competitive practices in the real estate industry. Key components include, disclosure of commission rates, prohibition of misleading practices, and increased transparency.

The compliance deadline is just around the corner on August 17th, 2024. Guess who gets tasked with helping enforce compliance? The MLS systems. 

Fresh from his Washington DC trip, Kurt is here to share how RMLS, MLS Aligned, and the other big MLS systems are trying to make compliance as smooth as possible. 

He knows there will be unforeseen challenges and obstacles, but they are doing their best to get systems in place to update the database and make the commission check box system standard. 

If you want a first hand walk through of the imminent changes, this show is for you. Kurt is always a wealth of knowledge and this conversation is no exception. 

We talk about possible issues with enforcement and how it all may play out. How will such a huge upheaval in the industry affect us? How smooth will the transition go? What future obstacles are yet to be seen?

Will these changes lead to more transparency and competitive pricing? Ultimately will any of this benefit consumers? How can those in the industry benefit from these changes? 

Join us as we unpack these critical questions and more as we discuss possible implications with Kurt von Wasmuth. This is an episode you won't want to miss!

 

Key Takeaways

The real estate world is changing overnight with this settlement

Compensation is no longer guaranteed; subscribers must now negotiate directly with buyers

MLSs are now responsible for ensuring written buyer broker agreements

Policing the new rules may lead to creative and uncertain strategies

Key logistical factors include clean data handoffs and removing compensation fields

Implementation of the new checkbox system is discussed

Websites sharing compensation knowledge cannot have MLS information

Listing percentages can be used on personal website data feeds

Sellers decide what to do with the buyer's agent's commission

The changes are expected to be better for consumers

Clarification on when buyer agreements are necessary during showings

Open house agents work for the seller; entering homes requires buyer broker agreements

NAR won't mandate agreement details

A buyer agreement is needed if you expect to get paid

RMLS will ensure written buyer agreements when required

RMLS won't act as legal experts on agreements

Agreements can be renegotiated

RMLS requires agreements but has no jurisdiction over disputes

All incentives are separate from the commission

Compliance is critical; potential for lawsuits is high

RMLS is working on the settlement and related tasks

Improvements to Aligned Showings and RMLSweb are ongoing

Advantages of a central MLS are discussed

We discuss the length of remarks in MLS

Reflection on whether past actions could have prevented current changes

More people will be leaving the industry over the next few years

The future is rosy and we have a lot to look forward to

 

Connect with Joe

Soldera Properties

Joe on LinkedIn

 

Connect with Steve

Steve’s Team at Premiere Property Group

Steve on LinkedIn

 

Connect with Kurt

RMLS

Kurt von Wasmuth LinkedIn

 

Resources

MLS Aligned