The class action settlement: It’s impact on buyers and sellers

 

In our 2023 year-end summary, we discussed the class action lawsuit and its potential impact on consumers. Since then, the real estate industry has seen significant developments, with the trade organization the National Association of REALTORS® (NAR) agreeing to a large settlement and implementing changes for REALTOR®-run MLS systems, where membership in the trade organization is mandatory. It’s important to note that while all REALTORS® are licensed real estate agents, not all licensed agents are REALTORS®—the latter signifies membership in NAR.

The Willamette Valley MLS operates independently and includes both REALTOR® and non-REALTOR® members, so it doesn’t have to adhere to NAR’s rules. In contrast, the Regional MLS (RMLS), covering Portland and Eugene, is a REALTOR®-run system and must comply with the settlement agreement. Starting August 17, 2024, NAR members will be required to follow the terms of this agreement. The WVMLS has decided to follow the advertising protocols from the NAR settlement though and as of August 16, 2024, will no longer allow offers of compensation to be shared on the WVMLS system. 

Key Changes Impacting Consumers:

For Sellers:

  • REALTORS® will be prohibited from making compensation offers to buyer agents outside the MLS system. Non-REALTORS® retain this ability.

For Buyers:

  • Hiring a REALTOR® will require you to sign a compensation disclosure.
  • You’ll need to sign a written buyer agent agreement before touring any properties. Non-REALTORS® , at this time, aren’t required to get a buyer agency agreement signed prior to touring a property. 

House Bill 4058, which mandates all real estate licensees in Oregon to have signed buyer agency agreements—including negotiated fees for service—starting January 1, 2025 passed in the short session this February. This means buyer agent agreements will be necessary for all agents, REALTOR® or not. The Real Estate Agency is still creating the rules regarding the timing of the buyer agency agreement and it is unknown if they will follow the same parameters as NAR and require them to be signed prior to touring a property.