DOJ doesn't want commission sharing "anywhere"
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- Опубліковано 22 тра 2024
- Top Department of Justice Attorney Jessica Leal told Judge Patti Saris earlier this week that DOJ doesn't want offers of compensation sharing "anywhere but certainly not on the MLS"
www.justice.gov/d9/2024-02/42...
finance.yahoo.com/news/doj-of... - Розваги
“I am calling on all Realtors to lower their commissions to protect homebuyers” Joe Biden.
Two questions: how is what the DOJ is asking for not a restraint of free trade? And why is the DOJ so adamant about separating compensation? What’s their motivation?
The residential real estate industry was found guilty of violating the Sherman Antitrust Act. The sharing of compensation between agents is what allows this industry to artificially inflate their fees. American homeowners pay much higher agent fees compared to the rest of the world. This is textbook price fixing. The new rules will force this industry to abide by our antitrust laws, just like every other industry has to.
BUYER'S bring the money...why should THEY pay for the Seller's agent? bollchit
That's the dumbest take of all takes. Sellers have always paid them. Always. And everyone knows that.
Jack, you said this exact thing some while back. That you suspected the DOJ was going to jump in and say that the seller should pay their agent and the buyer theirs.
I have said several times and been called a bad broker - that there is going to be siloed systems. Buyer Agents are EMPLOYED by the Buyers, and the Listing Agents are EMPLOYED by the Sellers. A complete seperation with no compensation credits permitted - period. Each one of them are going to be responsible for the payment of services that the Independent Contractor is Hired for.
This boils down to one thing. General Contractor style of work being done. They are Independent, sure. The Brokers in Charge and the Brokerages will need to de-centralized or prove that they have more value or bring on brokers as W2's and provide more value to Real Estate Brokers or just plain go out of business.
This is going to increase the numbers of Independent, Independent Contractors with no NAR membership.
Is this normal for the DOJ to get involved in something like this?
yes, Under the current administration
Another reason for no Broker commission sharing;
Listing Agmnt inks 6% commission on pretense ta splitting commission w a Buyer’s Broker is standard; ta MLS will bring Buyers; but then…
…Listing Broker brings Buyer; talks Seller out of MLS listing; & keeps Buyer Broker half!
That is such BS . . . I have never done that - it doesn't work that way. More agent bashing . . . it's a common theme here. The way it has worked is the seller agrees to x% commission in Total. The agent shows the seller what he/she plans to offer the buyer's agent IF a buyer's agent procures a buyer. The seller can say no, I don't agree. It is all negotiable and the seller can not sign the agreement, sell on their own, or use another agent. Nobody is 'forcing' them to do anything. This fantasy that there is a conspiracy is so wrong. However, I could care less if the DOJ restricts the seller from offering a commission to the buyer's agent; It's not a big deal. However , I will say it seems odd that the government wants to restrict what the seller can or can't do. I simply want to correct the narrative that agents are all out to 'conspire' against consumers . . . it's nonsense and agents should speak up against it.
The big issue is the cooperating broker fees are explicitly exempted from the RESPA "no kickbacks" rule; although I am not an attorney and each person needs to talk to their own attorney, it seems to me that to block cooperating broker commission sharing altogether Congress needs to remove cooperating broker fees from the list of RESPA no-kickback exemptions. In my opinion, the RESPA exemption is why you see coop fee sharing on residential transactions but not on strictly commercial transactions. A possible area of actual non-exempt antitrust violation is single family homes that are sold through the MLS with a cooperating broker fee share as non-owner-occupied investment properties or any other strictly commercial property (including 5+ unit residential/apartment complexes), land sales, and commercial/industrial/warehouse/office buildings sold through MLS with a coop broker fee, since RESPA doesn’t apply to these transactions (so no exemption from rule against kickbacks).
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If the DOJ gets their way, how are team owners (who buy Zillow leads and have them serviced by new agents) going to make money? Also, how are Zillow share holders going to make money? 😂
[Insert sarcasm here]
Hello Jack Has the MLSPIN responded to the DOJ letter on the 24th?
not yet, the plan now is a Joint Statement between the parties before June 21.
@@OnlineRealEstateAcademy Thank you