In a recent interview conducted by WAV Group partners Victor Lund and Kevin Hawkins, Art Carter, CEO of the California Regional Multiple Listing Service (CRMLS), shed light on the organization’s proactive approach towards addressing the ramifications of anti-trust complaints within the real estate industry. With over 110,000 participating real estate professionals in California, CRMLS has been diligently preparing contingency strategies over the past five years to navigate through the complexities arising from legal challenges against listing brokers offering compensation to buyer brokers through the MLS.

Traditionally, commission splitting has been a longstanding practice in real estate transactions, spanning over a century. However, recent legal actions, including the ongoing Sitzer-Burnett case where plaintiffs emerged victorious in a jury trial, have brought this practice under scrutiny. As negotiations for settlements progress between plaintiffs and defendants (such as NAR, brokers, franchises, and MLSs), CRMLS anticipates significant changes in its operational framework.

One notable alteration involves the complete removal of compensation offers from the NAR model rules and regulations, as well as MLS systems. Moving forward, buyer brokers will be mandated to secure a buyer agreement before initiating property showings. However, it’s essential to note that the settlement does not impede sellers from incentivizing buyer brokers through concessions. In fact, seller concessions, including repairs and closing costs, accounted for 39% of closed transactions in 2023 within CRMLS.

To adapt to these changes seamlessly, CRMLS is implementing modifications within its platforms:

  • Introducing a new field titled “Concessions in Price” across Matrix, Paragon, and Flexmls.
  • The “Concessions in Price” field will be optional, displaying either a dollar or percentage amount.
  • A corresponding checkbox will accompany the “Concessions in Price” field. Upon selection, the following message will auto-populate in the listing: “Seller will consider a buyer concession if made in an offer.”
  • Neither the “Concessions in Price” field, nor the checkbox will be mandatory, providing flexibility to users.

For brokers seeking further guidance or support, CRMLS offers resources through its Broker Resource Center and a dedicated support line at 909-859-2043.

[CRMLS Broker Resource Center](https://go.crmls.org/brokers/)

 

The California Association of REALTORS® and CRMLS are doing their best to see through the foggy lens of what will emerge as the final settlement, and are prepared to support their brokers whatever the outcomes are. They will continue to collaborate with other MLSs directly, with the Council of MLS, and with the National Association of REALTORS® as the industry makes headway toward an efficient and transparent real estate marketplace.