Time is running out to protect energy choice in Washington! Your signature is needed to make sure gas utilities continue to provide natural gas to all customers who want it.
Visit this website for details about the initiative, a super signing event this weekend, and other local signing locations: https://letsgowashington.com/i-2066-stop-the-gas-ban-protect-energy-choice/
In 2019, home sellers filed two class action lawsuits (known as Moerhl and Sitzer/Burnett) against the National Association of Realtors (“NAR”) and several large brokerage franchisors. The plaintiffs alleged that the defendants conspired to inflate commissions pursuant to a mandatory NAR rule that requires the seller, via the listing broker, to offer compensation to the buyer’s broker.
On October 31, 2023, a jury in Missouri rendered a $1.8 billion verdict in favor of the plaintiffs in Sitzer/Burnett. Since that jury verdict, there have been more than 20 “copycat” cases filed around the country making similar claims against NAR and a variety of defendants, including brokerage firms and MLSs.
On March 15, 2024, NAR announced a proposed agreement to settle all home seller’s claims. NAR agreed to pay $418 million to the plaintiffs over four years. NAR also agreed to require Realtor brokers to make several “practice changes” and MLSs, who “opt-in” to the settlement, to put in place certain rule revisions for a period of seven years, in return for a release of claims. The court granted preliminary approval of the settlement on April 23, 2024, and the final approval hearing is set for November 26, 2024.
MLSs electing to join the settlement must agree to adopt the rule changes outlined in the settlement and MLSs who are not exclusively owned by Realtor associations (NWMLS is owned by its member real estate firms and not affiliated with NAR), must also make a monetary payment to the plaintiffs. The decision to “opt-in” to the settlement must be made by June 18, 2024.
It is important to note that the broker practice changes in the proposed settlement agreement are separate and distinct from the requirements for MLSs. Brokers who are Realtors can participate with a MLS who has not opted-in to the settlement and still comply with the broker practice changes required by the settlement.
NWMLS has led the industry with initiatives that afford sellers and buyers transparency, meaningful choice, and clear opportunities to negotiate their broker’s compensation.
In 2019, NWMLS eliminated the requirement that a seller offer compensation to the buyer’s broker. At the same time, NWMLS made public the amount of compensation offered to the buyer’s broker to inform buyers of any such offer.
In 2022, NWMLS again led the industry by providing even more transparency and flexibility for buyers, sellers, and brokers. The most notable changes included:
NWMLS’s most recent consumer initiative was revising Washington’s “Agency Law” effective January 1, 2024. The new law requires brokers to enter into a written services agreement to represent either a buyer or a seller (previously only required for sellers). All services agreements must be entered into at the outset of the parties’ relationship and comprehensively address broker compensation and details of representation.
NWMLS will not “opt-in” to NAR’s proposed settlement agreement. NWMLS’s rules and forms, together with the revised Agency Law, provide for consumer-friendly brokerage relationships. Sellers negotiate how much to compensate the listing firm and decide whether to offer to contribute toward the buyer’s broker compensation and the amount of any such offer. Buyers agree how much to pay their own brokers at the outset of their relationship, and can then negotiate for the seller to help cover that cost as part of the purchase.
NAR’s proposed settlement agreement largely duplicates the rules and practices in place in NWMLS’s service area for several years – with one notable exception. The settlement agreement eliminates compensation transparency for buyers and restrains sellers’ choice by prohibiting sellers from making offers of compensation through the MLS. Instead, the settlement agreement allows for offers of compensation “off MLS”, where that information is hard to find and not available to all buyers and brokers. That change is a step in the wrong direction and is detrimental to consumers and brokers alike.
NWMLS strives to provide consumers with all relevant information about a listed property to promote efficiency, competition, and an open and free market. NWMLS’s rules and forms broaden, not limit, consumer choice and do not favor any brokerage service model or compensation structure. NWMLS allows the market to operate unimpeded by MLS rules.
NAR’s removal of compensation transparency from the MLS pushes consumers and brokers to make secret deals “off-MLS”, inviting deceptive practices, discrimination, and unfair housing. Depriving buyers of information about the transaction risks harming buyers, especially those buyers who are already disadvantaged, including first time home buyers and members of protected classes. Of course, prohibiting offers of compensation in the MLS also unnecessarily restrains the seller’s choice and absolute right to offer compensation to a brokerage firm representing the buyer.
NWMLS’s prior rules and forms changes significantly advanced a transparent and consumer-friendly marketplace. NWMLS has, and will continue, to seize every opportunity to enhance the quality of real estate brokerage services in the Northwest.
Accordingly, NWMLS plans to revise its forms and listing process to ensure sellers are aware of an option that currently exists when listing a property for sale, but may not be apparent to all sellers and brokers. In some instances, a seller may be prepared to pay compensation to a buyer broker, but may not be willing to offer a specific amount of compensation when listing the seller’s property for sale. A seller may instead ask that the buyer include any requested amount of compensation payable to the buyer broker in the buyer’s offer. The seller can agree to that amount or negotiate, just like any other term of the agreement.
NWMLS’s procedures are facilitated by progressive rules and forms and give consumers more choices, not fewer, and more information, not less. A seller may choose to offer no compensation, offer a specific amount of compensation, or ask that the buyer request compensation for the buyer broker in the buyer’s offer. These options all exist in NWMLS’s system – an open, fair, and transparent marketplace for consumers and brokers.
NWMLS expects to publish its revised forms with this clarified option for sellers in mid-August, along with other minor revisions to its forms.
Published by the NWMLS: May 28, 2024
Many of you may have heard about this over the last week. Sadly there is A LOT of misinformation out there. I’ve given it a lot of thought and think that the NWMLS’s statement summarizes it best for the majority of Washington State:
“NWMLS is owned by its member real estate firms and not affiliated with NAR.
Beginning in 2019, and continuing in 2022, NWMLS made changes to its rules, forms, and processes that address the issues raised by the national litigation and outlined in the proposed settlement agreement. NWMLS’s changes enhanced transparency, consumer choice, and negotiation opportunities related to broker compensation.
NWMLS’s most recent efforts, in cooperation with Washington REALTORS®, culminated in revisions to the Washington state “Agency Law” that were effective January 1, 2024. As a result, Washington law already requires brokers to enter into a services agreement to represent a buyer, which is one of the primary “practice changes” in the proposed settlement agreement.
While NWMLS’s system of rules and forms, together with the revised Agency Law, provide both buyers and sellers with complete transparency, choice, and control of broker compensation, NWMLS and its members will continue to take advantage of every opportunity to enhance the quality of real estate brokerage services in the Northwest.”
Watch this 30 second video that highlights what Washington REALTORS® recently did to advocate for more transparency in real estate.
4/23/24 Update: Judge Bough granted the Plaintiffs’ Motion for Preliminary Approval of this agreement, which means that the settlement agreement is preliminarily approved.
Don’t hesitate to call or contact me with any questions!
Washington Realtors® met with Legislators January 19th to seek support for bills that increase housing supply and protect consumers. I lead meetings with 4 Legislators or their staff in the 30th and 47th districts, and with our explanations of personal experiences, we were able to help Legislators understand the importance of the proposed legislation!
After our first meeting; such a great group to represent the 30th district!
Our second meeting.
The Capitol building and campus were full of our blue “Welcome Home” scarves all afternoon. As we approached staff to check-in, we were told “we can see you’re Realtors!”
Now that the 2023 Legislative Session has officially begun, Washington Realtors® need your help to make this session the one where Legislators make housing policy a priority!
Please take a few minutes to send a pre-written message to let your Legislators know that Housing Inventory must be a top issue for the 2023 session – it’s very quick and easy! Contact me with any questions.
Click here to TAKE ACTION: https://www.votervoice.net/NAR/1/Campaigns/99612/Respond
I’m excited to be preparing to head to our capitol building in Olympia next week to meet with Legislators in the districts I own my home and real estate office in, as well as others. REALTORS® will be advocating for homeownership, more housing, and to improve consumer protections.
To preview our Legislative Priorities for 2023, visit: https://warealtor.org/about-us/contact-us/news-media/blogdetails/articles/2023/01/04/washington-realtors—2023-legislative-priorities
For more details and/or to participate, feel free to contact me!
I’m proud to be participating in interviews for Seattle King County Realtors endorsements funded by the Realtors Political Action Committee (RPAC), of which I voluntarily serve as a Trustee.
RPAC advocates to and endorses those that protect the business of REALTORS®, and homeownership and private property rights on the national, state and local levels.
Feel free to contact me for lists of our candidate endorsements in Seattle-King County, Tacoma-Pierce County and/or Spokane and the surrounding areas. I will be happy to share lists of those that understand and acknowledge the importance real estate plays in our communities, support REALTOR® issues, and that are committed to working with us on housing issues as public policymakers.
If you’re a REALTOR® and interested in investing in RPAC, please contact me! Your support is vital in resolving the current housing crisis.
To find out where Seattle-King County candidates stand on issues affecting homeownership, you may review the Seattle-King County REALTOR® Voting Guide: https://www.nwrealtor.com/advocacy/voting-guide
To view a list of Tacoma-Pierce County candidates that received endorsements from the Tacoma-Pierce County REALTORS®: https://tpcar.org/tpcar-2021-general-election…
For the list of Spokane Association of REALTORS® endorsed candidates: https://www.spokanerealtor.com/2021election-update
Feel free to reach out to me for information about REALTOR® endorsed candidates in other areas. I’ll be happy to help you support candidates that support homeownership!
The Washington REALTORS® advocates for REALTORS® and their clients, and we had some big wins this week! ALL real estate sales will be exempt from the new capital gains tax, and the bill for rent control died. Contact me if you have questions about the government affairs that affect your real estate goals; I’ll be happy to help! 
REALTORS around the state of Washington, including myself, will be meeting with our legislators today to discuss housing solutions for 2021: how to make housing available and affordable, and to erase out-dated racial covenants.
For information about our efforts: MyNeighborWa.com
Managing The Real Estate Details 