IMPACT OF NAR’S PROPOSED SETTLEMENT ON COMMERCIAL REAL ESTATE
Posted May 2, 2024
Below are frequently asked questions that MIAMI Association of REALTORS® has received regarding the impact of NAR’s proposed settlement agreement on commercial real estate. For all of MIAMI REALTORS®’ resources, and to stay up-to-date on the latest developments, visit www.miamirealtors.com/facts.
WHAT IMPACT DOES THE PROPOSED NAR SETTLEMENT HAVE ON COMMERCIAL TRANSACTIONS?
While NAR’s proposed settlement agreement is mainly focused on residential transactions, antitrust laws apply to real estate, generally – that includes both residential AND commercial transactions. The biggest change for commercial? Compensation, if any, will not be displayed in the MLS once the new rules are implemented. When NAR releases the MLS rules that will be implemented, we will know whether there are additional implications for commercial real estate. Check www.miamirealtors.com/facts frequently for updates.
ARE COMMERCIAL REALTOR® MEMBERS INCLUDED IN THE RELEASE OF LIABILITY?
YES! Most (but not all) individual REALTOR® members, including both residential AND commercial REALTOR® members, are included in the general release, subject to the other limitations in NAR’s proposed settlement agreement. Even if you are part of a brokerage that is NOT automatically included in the general release, you are likely still covered – as long as you are a REALTOR® member as of the date of class notice. NAR shared that the date of class notice has not been set, but it is anticipated to be no earlier than August 17, 2024. Renew your dues ASAP! If you have questions about whether you are covered, visit facts.realtor or contact NAR Staff Attorney Mike Rohde.
WILL THE MLS RULE CHANGES APPLY TO COMMERCIAL LISTINGS?
In general, YES! The MLS rule changes will apply to all REALTOR® members. The biggest change for commercial? Compensation, if any, will not be displayed in the MLS once the new rules are implemented. Also, seller concessions are allowed in the MLS. As far as buyer broker agreements being required before showing a listing, NAR clarified that the new rules will not require buyer broker agreements in commercial transactions.
IS A BUYER BROKER AGREEMENT REQUIRED FOR COMMERCIAL TRANSACTIONS?
NO! NAR clarified that the requirement to use buyer broker agreements under the proposed practice changes are focused on residential transactions and that they will not be required for commercial transactions.
CAN REALTOR® MEMBERS SHARE THEIR COMPENSATION IN COMMERCIAL DEALS?
YES! NAR’s proposed settlement agreement does not dictate how compensation, if any, which could include but is not limited to commission, is paid. The amount, if any, and way compensation is paid, must be made unilaterally and independently, just like all business decisions. Compensation has always been and will continue to be fully negotiable.
CAN A LANDLORD’S REPRESENTATIVE COMPENSATE A TENANT’S REPRESENTATIVE FOR A LEASE?
YES! Compensation, if any, is permitted. Commercial transactions, whether for the sale of a property, a business opportunity, or a lease, are all governed by antitrust laws. But the biggest impact from NAR’s proposed settlement on commercial transactions is that compensation, if any, will not be allowed to be displayed in the MLS.
QUESTIONS?
Send your questions to legal@miamire.com.
DISCLAIMER:
The information in this program, and corresponding materials, is provided for educational and informational purposes only, and should not be construed as legal advice or as an offer to perform legal services on any subject matter. The content contains general information and may not reflect current legal developments or information. The information is not guaranteed to be correct, complete, current, or suitable. MIAMI Association of REALTORS® (“MIAMI REALTORS®”) makes no warranty, expressed or implied, about the accuracy or reliability of the information in this program or materials. The materials may contain technical or typographical errors. MIAMI REALTORS® does not guarantee their accuracy, completeness, or suitability. Recipients of the information in this program or materials should not act or refrain from acting on the basis of any information without seeking appropriate legal advice on the particular facts and circumstances at issue from an attorney licensed in the recipient’s state. MIAMI REALTORS® expressly disclaims all liability with respect to actions taken or not taken by the recipient based on any or all of the information in this program and materials. Communications with or from MIAMI REALTORS® or do not constitute or create an attorney-client relationship between any recipients. Nothing herein is intended to create an attorney-client relationship and shall not be construed as legal advice. IN NO EVENT SHALL MIAMI REALTORS® BE LIABLE FOR ANY SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES RELATING TO THESE MATERIALS OR FOR ANY USE OF OR RELIANCE ON THESE MATERIALS.
