P
rotecting Brokers and Agents in the Post-NAR Settlement Era

    The real estate industry is undergoing significant changes in the post-NAR settlement era, and one of the most significant challenges is how to protect brokers and agents from potential violations of the NAR deal to settle commissions lawsuits. Merri Jo Cowen, CEO of Stellar MLS, emphasized the importance of safeguarding these professionals from risks associated with commissions-related rule violations.

    Stellar MLS, based in Florida and the third-largest MLS in the nation, implemented rule changes early to give people time to adapt before the August 17 deadline for most MLSs to eliminate offers of compensation and require buyer broker agreements. The MLS launched a large-scale educational campaign consisting of 104 different communications, broker forums, agent forums, Facebook Live presentations with over 50,000 views, other videos with 25,000 views, and a website with more than 70,000 views.

    While these efforts were made to prepare everyone for the changes, reaching everyone personally was a challenge due to the large number of subscribers (over 83,000). Cowen emphasized that Stellar is not just an enforcer but also a protector of its brokers and agents. The $500 fine for mentioning "co-op commission" in agent-only remarks for a listing before August 17 was a significant concern, but Cowen believes that the vast majority of listings have followed the new rules since August 6, with fewer than 2% showing a compensation violation and less than 300 fines issued so far.

    Looking ahead, Cowen believes that within a few months, things will settle down, and this change will become more second nature. However, she warns that change is not over yet. The seeds of other challenges have already been planted, such as a lawsuit filed by agents challenging the "three-way agreement," which ensures that Realtors who join at the local level automatically become members of both their state association and NAR. Additionally, there is the revived litigation involving NAR's Clear Cooperation policy, which requires publicly marketed listings to be submitted to an MLS within one business day of going live.

    The question for Stellar and other real estate institutions remains the same: how can they be nimble and adjust to change while helping their customers manage it? By being proactive in their educational campaigns and rule changes, MLSs like Stellar can better protect their brokers and agents while navigating the complexities of the post-NAR settlement era.