SIOUX CITY — Realtors in the Sioux City area market offered mixed reviews of the landmark National Association of Realtors settlement reached last month but not yet in effect, that resolves lawsuits over the trade group's agent commission practices.
As part of the settlement, the NAR agreed to no longer require a broker advertising a home for sale on its affiliated Multiple Listing Services to offer any upfront compensation to a buyer’s agent. The rule change leaves it open for individual home sellers to negotiate such offers with a buyer’s agent outside of the MLS platforms, though the home seller’s broker has to disclose any such compensation arrangements.
The NAR also agreed to require agents or others working with a homebuyer to enter into a written agreement with them. The new policies are set to go into effect this summer.
"The settlement, which is subject to court approval, makes clear that NAR continues to deny any wrongdoing in connection with the Multiple Listing Service (MLS) cooperative compensation model rule (MLS Model Rule) that was introduced in the 1990s in response to calls from consumer protection advocates for buyer representation," the National Association of Realtors said in a statement.
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Namon Jones, an agent with Salem Real Estate in Sioux City, spoke optimistically of the settlement, saying it will "better protect sellers and buyers as a whole, but also protect agents." (The settlement will affect residential real estate transactions more than commercial real estate. Jones works in both.)
"I think ultimately what's going to happen is -- and it's a good thing -- is just that the information that sellers and buyers will have will be more informed," he said. "I think everything, as far as any agreements and compensation and everything, there'll be no gray areas there."
The Northwest Iowa Regional Board of Realtors, the regional office for the NAR, did not immediately respond this week to questions the Journal submitted in writing. The NWIA office turned down the Journal's request to speak with a local official.