In Case You Missed It: This Week at NAR Recap
It was a busy week at NAR as the Burnett v. NAR et al trial wrapped and a verdict was reached, finding NAR liable in the case. Later in the week, NAR announced new leadership and a plan for a comprehensive search process to identify a permanent CEO.
Below is a recap and more information on everything that happened this week:
Monday, October 30th
On Monday, the final defense witness took the stand, which was followed by instructions by the judge to the jury and closing remarks by lawyers for the plaintiffs and all co-defendants. During NAR’s closing remarks, outside counsel Ethan Glass presented to the jury how there was no evidence to support the plaintiff’s allegations against NAR.
- NAR demonstrated there is no evidence or expert testimony to support allegations of antitrust violations claimed by plaintiffs. It makes no sense that hundreds of thousands of people got together to coordinate on a very public rule and public rule-making process involving hundreds of thousands of public documents.
- NAR affirmatively proved purpose and effect of the cooperative compensation rule, which enables brokers to know how much they will be paid before starting work. NAR’s model rule has expressly stood for the proposition that buyer brokers, like everyone else, have the right to know how much they will be paid prior to commencing work. Commission rates are market-driven and have fluctuated over time. Agent compensation is set between brokers and their clients and has always been negotiable at any point in the transaction. And those costs are spelled out to buyers and sellers.
- NAR reaffirmed that a trade organization can lawfully create rules. NAR illustrated how trade associations are legal and serve important purposes, including for consumers. It is common practice for trade associations to meet or talk amongst the industry and adopt a rule or industry standard. And membership is voluntary.
- NAR showed that there is no harm to sellers. NAR doesn’t tell people what to charge or to receive a commission. NAR rules are very intentionally pro-consumer and pro-business competitive, and buyer brokers exist because consumer protection agencies thought they were important.
Watch Video on Jury Deliberation Process
Tuesday, October 31st
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 home 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.
Read Statement from NAR President Tracy Kasper and FAQs on the case | Watch Video on what to expect from the case moving forward
Thursday, November 2nd
National Association of Realtors®, the country's largest trade association, announced that Nykia Wright has been appointed its interim Chief Executive Officer, starting November 20, 2023. Bob Goldberg, who announced his planned retirement in June of this year, will serve as an executive consultant to NAR to help support the transition. As previously announced, NAR is conducting a comprehensive search process to identify a permanent CEO.
Read statement from NAR President Tracy Kasper
Ohio REALTORS continues to monitor both situations closely and will keep you informed as additional news develops.
