NAR Settlement – Commercial Transactions

NAR provided us with some Talking Points:

• The proposed settlement agreement—like the Sitzer-Burnett lawsuit and the copycat lawsuits—is focused on residential real estate transactions. That means most commercial transactions will not be affected.
• In many markets, commercial listings appear in commercial information exchanges (CIEs) and not multiple listing services (MLSs), and do not include an offer of compensation.
• The settlement prohibits offers of compensation on an MLS and requires MLS participants working with buyers to enter into written agreements with their buyers. These practice changes will go into effect around late July.
• For properties listed on an MLS, offers of compensation continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals—as is the case for most commercial transactions.
• In addition, sellers can offer buyer concessions on an MLS (for example—concessions for buyer closing costs, tenant improvement allowances, etc.) provided that such concessions are not conditioned on the use of or payment to a buyer broker.
• For all transactions, the types of compensation available for buyer/tenant brokers continues to take multiple forms, depending on broker-consumer negotiations.
• For all real estate professionals, compensation would continue to be negotiable and should always be negotiated between agents and the consumers they serve.

Q&A
1. Are REALTORS® who deal in commercial real estate covered under the terms of the agreement?
• The settlement does not distinguish between REALTORS® who deal in commercial real estate from those who work in residential real estate.
• If you are an NAR member, you are covered by the settlement unless:
o You are an employee of: At World Properties, LLC; Compass, Inc.; Douglas Elliman, Inc.; Douglas Elliman Realty, LLC; eXp Realty, LLC; eXp World Holdings, Inc.; Hanna Holdings, Inc.; HomeSmart International, LLC; Howard Hanna Real Estate Services; Keller Williams Realty, Inc.; Real Broker, LLC; The Real Brokerage, Inc.; Realogy Holdings Corp.; Realty ONE Group, Inc.; Redfin Corporation; RE/MAX, LLC; United Real Estate; or Weichert, Realtors® OR
o You are an independent contractor or employee associated with HomeServices of America or one of its affiliates.

2. What do these practice changes mean for commercial practitioners?
• The proposed settlement agreement—like the Sitzer-Burnett lawsuit and the copycat lawsuits—is focused on residential real estate transactions. That means most commercial transactions will not be affected.
• In many markets, commercial listings appear in commercial information exchanges (CIEs) and not multiple listing services (MLSs), and do not include an offer of compensation.
• The settlement prohibits offers of compensation on the MLS and requires MLS participants working with buyers to enter into written agreements with their buyers. These practice changes will go into effect around late July.

https://www.nar.realtor/commercial

Economists: Rate Cuts Will Help Commercial Recovery

https://www.nar.realtor/magazine/real-estate-news/commercial/economists-rate-cuts-will-help-commercial-recovery

NAR Real Estate Forecast Summit-Commercial

On March 7, 2024, from 12:00 – 1:00 p.m. ET, NAR will hold a virtual economic and real estate summit that will provide an outlook on the changing commercial real estate market.

https://www.nar.realtor/events/nar-real-estate-forecast-summit

Top Locations for Investors to Consider in 2024

https://www.baymgmtgroup.com/blog/locations-for-investors/

Top Locations for Investors in 2024
If you’re looking at investing in real estate in 2024, knowing where to buy is key. While mortgage rates and housing costs are rising in several areas across the nation, there are some cities where home values are showing promising signs.

Raleigh, North Carolina
Charlotte, North Carolina
Louisville, Kentucky
Nashville, Tennessee
Dallas/Fort Worth, Texas
Austin, Texas
Phoenix, Arizona
Atlanta, Georgia

Commercial RPR class

REALTOR Property Resource for commercial agents and brokers

At the end of this course you will be able to:
1. Create an RPR account
2. Utilize RPR to search and find information on commercial properties
3. Examine location/area demographics using RPR tools to research commercial market trends

Credits:
CE 3 Elective
PLE 3 Elective

GLAR members please log into louisvillerealtors.com to register.
If you are a member of another local board of REALTORS, please email Education@louisvillerealtors.com to register.

$25 for GLAR members
$35 for non GLAR members