Dear Members,

Last Friday the real estate world was informed that NAR had settled the Sitzer lawsuit. Here is a link to a statement NAR released.

Over the weekend numerous news outlets and pundits offered purely speculative, and in many cases outright incorrect, information and opinions on the settlement’s impact.

There is a lot to process and it will take time to determine how this settlement will impact buyers, sellers, and REALTORS®. Two recent podcasts that try and provide some rational context to the settlement are from Gary Acosta’s Blog and Steve Murray’s Housing Wire interview.

The settlement has yet to be approved by a judge and, if it is, will not take effect until this summer at the earliest. The REALTOR® Code of Ethics, Metro MLS rules and Wisconsin state law governing real estate have not changed. We will let you know of any rules or policies that change in the future.

Furthermore, the real estate market has not changed. Sellers want to sell their homes and buyers want to own homes. REALTORS® historical role as trusted advisors to sellers and buyers will not change. Greater Milwaukee Association of REALTORS®, Metro Multiple Listing Service, and Wisconsin REALTORS® Association remain committed to a pro-consumer market, and preserving the model of cooperation and transparency through the Multiple Listing Service.

You may have noticed that GMAR and Metro MLS had no Sitzer copy-cat lawsuits filed against them. We believe that is because of Wisconsin’s long tradition as a pro-consumer state and the transparency in transactions REALTORS® have worked hard to provide for buyers and sellers. For example, regarding the claims of the Sitzer copy-cat lawsuits, the WB-1 Residential Listing Contract explicitly states that sellers may provide a commission to cooperating brokers working with buyers. We have always been transparent about who gets compensated and how much, and that commissions are negotiable.

We will continue to update you on the latest developments as NAR, WRA, GMAR and Metro MLS review the impact of the settlement.

As always, we appreciate your thoughts, opinions and comments.

Sincerely,

Mike Ruzicka

mike@gmar.com