Aricle Courtesy of: RIS Media
By: Jesse Williams

Citing the recent National Association of REALTORS® (NAR) settlement agreement, a panel of six judges today denied an attempt by plaintiffs in commission-focused class-action lawsuits to consolidate all the copycat cases under one judge, saying that the “procedural posture of the litigation” makes that effort inappropriate.

“After settlement proceedings conclude, and it becomes evident how many claims and parties still remain and the extent to which they overlap, if at all, it may be that formal centralization is needed or, perhaps, informal coordination efforts can adequately address any duplicative pretrial proceedings,” wrote Judge Karen Caldwell, chair of the Judicial Panel on Multidistrict Litigation (MDL), in a four-page opinion.

The ruling leaves the 20-something Burnett copycat cases filed all over the country to proceed under different judges, schedules and procedures—a scenario that will almost certainly turn out to be a mixed bag for the real estate industry at large, as different brokerages continue to litigate claims all across the country filed by recent homebuyers and sellers alleging that real estate rules violated antitrust laws.

Caldwell notes that both defendants and plaintiffs disagreed on nearly every part of the consolidation effort, with some even switching their position after a hearing late last month, in which the MDL heard oral arguments from nearly a dozen entities involved in the lawsuits.

Those flip-flops, along with the NAR settlement, appear to have pushed the MDL to stay out of real estate commission litigation for now, with Caldwell further pointing out that brokerages left out of the NAR agreement might still opt in, making the choice to consolidate (and where to do so) even more uncertain.

“Given the broad contours of this new settlement agreement and the changing landscape of the parties’ positions on centralization, we think it wise to deny centralization at this time. The (NAR) settlement may well resolve at least some claims in this litigation, if not many. We cannot speculate on the number of parties and claims that will remain once this and any other settlements are approved,” she wrote.

Initially filed by the same plaintiffs behind Burnett back in December, the effort to consolidate commission cases appeared to be a straightforward one, with NAR supporting centralization of cases as well (though it was later forced to withdraw its participation in the MDL proceedings by the settlement agreement).

Other brokerages large and small also weighed in, with many taking no position and others targeting specific districts based on geographical convenience and other factors.

The MDL also considered whether to include buyer and seller cases together, along with what Caldwell refers to as “tag-along” cases—those not involving NAR or NAR-affiliated entities.

Exactly what effect consolidation would have had on the outcome of all these disparate lawsuits remains unclear—and could remain a mystery, although Caldwell made it clear that circumstances could change in the future, and was explicit that the panel was denying the consolidation effort on technical grounds rather than on its merits.

“We deny this motion based on the procedural posture of the litigation and, therefore, do not reach the issue of whether centralization would otherwise be appropriate here if these settlements had not been reached,” she wrote.

Article Courtesy of: Inman News
By: Darryl Davis

Transparency and communication are more important than ever before. Darryl Davis offers essential talking points for your next commission conversation with sellers

In the wake of the landmark legal ruling against the National Association of Realtors (NAR), homeowners and industry professionals alike are re-evaluating the conventional practice of sellers paying commissions for both the buyer’s and seller’s agents. This verdict has sparked a nationwide debate, questioning the fairness and efficacy of this long-standing tradition in the U.S. real estate market. 

While the outcome of the lawsuit may not immediately revolutionize existing practices, it does open a critical dialogue about the distribution of commission costs. I want to explore the benefits that sellers reap from adhering to the traditional model, shedding light on the advantages of this practice becomes more pertinent than ever, providing sellers with compelling reasons to continue shouldering both sides of the commission.

This won’t change the outcome of the lawsuits, but it should give you some compelling ways to articulate the benefits to the seller for paying both sides of the commission.

In the United States, the seller almost always pays the commission for both the selling and buying agents, a practice that has been much scrutinized with lawsuits continuing to pop up.
However, this approach has been a cornerstone of real estate transactions for decades. Understanding the benefits of this practice is crucial, especially in the current climate of legal and regulatory challenges.

Advantages of seller-paid commission for sellers

• Increased buyer interest: When sellers cover the commission, the property becomes more attractive to a broader range of buyers. This is particularly beneficial in competitive markets, where every advantage counts.
• Potential for higher selling price: Because buyers don’t need to reserve funds for commission, they might be willing to offer a higher purchase price.
• Faster sale of property: By removing the extra financial burden on buyers, sellers often enjoy quicker sales, reducing the time their property spends on the market.
• Simplified negotiation process: With commission costs off the table, negotiations can focus squarely on the property’s price, streamlining the discussion.
• Reduced financial burden on buyers: This approach makes properties accessible to a wider pool of buyers, some of whom might have limited available cash for upfront costs.
• Enhanced seller reputation: Sellers who cover commission costs are often viewed as more motivated and cooperative, traits that can attract serious and qualified buyers.
• Streamlined transaction process: The transaction becomes less complex with fewer parties negotiating over commission payments, leading to a smoother overall experience.

Here’s the deal. Until we get more direction from the “powers that be” on what and how buyer’s agents should be paid, we should probably keep doing what we are doing — but with a lot more transparency and better communication skills with everyone involved.

The practice of sellers paying the buyer’s side of the commission in the U.S. real estate market has deep roots. While recent legal challenges have put these practices under the microscope, it’s clear that this method offers multiple advantages for sellers.

From attracting more buyers to potentially fetching higher selling prices and ensuring a quicker sale, the benefits are significant. As the industry navigates these legal waters, understanding the rationale behind this practice helps in appreciating its value in the complex world of real estate transactions.

Additionally, NAR provides several resources to help you discuss compensation with consumers:

•  realestatecommissionfacts.com
• Competition.Realtor
• How Real Estate Compensation Works
•  Selling a Home is Easy if You Work with a REALTOR®

Darryl Davis is the CEO of Darryl Davis Seminars.

The Greater Boston Association of Realtors’® (GBAR) Diversity Scholarship Program was created in 2023 to provide training and financial support to members of racial minority groups who aspire to a career in real estate.  By establishing this scholarship program, it is our hope to promote an inclusive environment within the local real estate industry in which the population of licensed real estate professionals mirrors the diversity of home buyers and homeowners residing in the 64 communities in the Greater Boston region served by GBAR.  

Each year, the association will seek to award a minimum of 10 scholarships to cover the cost of attending the real estate salesperson pre-licensing course, the registration fee to take the salesperson’s licensing exam twice (if necessary), and first-year of membership dues to join the Greater Boston, Massachusetts and National Associations of Realtors®, for those who affiliate with a Realtor® member firm of the GBAR.  GBAR has partnered exclusively with the New England Real Estate Academy to provide pre-licensing course instruction to scholarship recipients, which includes 20 hours of online training via webinar and 20 hours of self-directed study, digital and audio versions of the “Principles of Real Estate Practice in Massachusetts” instruction manual, and access to a monthly study group, quizzes and a practice final exam.  

Scholarship recipients will be provided three months from notification of selection to enroll in the salesperson pre-licensing course and six months from the date of enrollment to complete the course.  Course fees will be paid in advance by GBAR, while the license exam fee will be reimbursed to scholarship recipients following completion of the examination, provided appropriate documentation is provided, and application for Realtor® membership with GBAR is made within 60 days of passing the licensing exam.

If you are interested in applying for a GBAR Diversity Scholarship, we recommend reviewing the eligibility and application criteria cited below prior to submitting an online application.  Applicants should be aware that an interview with the scholarship selection committee is part of the application process. 

The deadline to submit an application is March 1, 2024.  For questions, contact GBAR at 617-423-8700 or 617-224-9303.

Scholarship Eligibility Criteria:

Applicants must be:
- At least 18 years of age;
- A legal U.S. resident and permanent resident of Massachusetts;
- Residing in one of 64 communities in the Greater Boston Real Estate Board/GBAR jurisdiction;
- A member of a racial minority.  Racial minority is defined as a person of race or national origin that is African American, Asian American/Pacific Islander, Hispanic/Latino, Middle Eastern American, Native American.
- Able to satisfy the requirements for licensure for real estate salespersons set by the Massachusetts Board of Registration of Real Estate Brokers & Salespersons;

Scholarship Application Criteria:

- Complete the required scholarship application on or before March 1st.
- Submit two personal letters of recommendation;
- Students currently enrolled in a pre-licensing course with New England Real Estate Academy are ineligible to apply;
- Individuals shall interview with the scholarship selection committee as part of the application process

Promotional Flyer

APPLY HERE

GBAR is pleased to announce a new member benefit through our partnership with SafeShowings LCC, to bring a mobile app that gives REALTORS® control of their safety in real time.

The safety and well being of our members is ALWAYS a top priority and this is the FIRST mobile proactive safety app of its kind. We we encourage you to implement and use this new member benefit in your real estate business! 

SafeShowings is the first mobile proactive strategic deterrent, safety app of its kind. It captures a real-time image of the person or people to whom a professional, most often a lone worker, is about to show a property. The images are then uploaded to a secure location. If a user is unable to end a SafeShowings showing properly and within the allotted time, the application will immediately notify the user’s selected emergency contacts with the exact location and images of the person or predator. This is the only real-time, locale-entry strategic deterrent application that dissuades criminal behavior because the person intending to do harm clearly knows that they will get caught. The National Institute of Justice (NIJ) states that “Research clearly shows that the chance of being caught is a vastly more effective deterrent than even draconian punishment.” According to the NIJ, a strategic deterrent is the number one way to ensure that you and your employees are safe. A strategic deterrent is the last line of defense.

With SafeShowings, the uer captures the following every time he or she enters a property:

• Images
• Contact names
• Cell phone numbers
• GPS location of the SafeShowings user

Click here to download the SafeShowings App--for FREE!

Resources

Getting Started Video
FAQs

SafeShowings App Launch Webinar Replay

Click here to view a replay of our SafeShowings App Launch Webinar, and learn more about how to get setup and start using this effective tool at your next showing or open house!

On October 19, the Greater Boston Real Estate Board (GBREB) held a webinar for to introduce college students to introduction to Commercial Real Estate (CRE).

GBREB consists of five divisions: Building Owners and Managers Association, Boston (BOMA Boston), Commercial Brokers Association (CBA), Greater Boston Association of Realtors (GBAR), Real Estate Finance Association (REFA), and Massachusetts Apartment Association (MAA).  The program included a panel discussion with industry professionals from all five divisions who provided an introductory overview of the Commercial Real Estate Industry and its many career paths, and will share their tips on how to connect, network, and launch your career. 

Moderator: Kathleen Franco, Senior Vice President, Residential Operations, Claremont Properties, 2023 GBREB Chair  

Panelists:
Jessica Buonopane, CAPS, Senior Vice President, Residential Properties, National Development, 2023 MAA President
Alison Powers, Executive Vice President, JLL, 2023 CBA President
Ravi Ragnauth, Partner & CFO, Berkshire Residential Investments, 2023 REFA President-Elect
Tanisha N. Salmon, Realtor, Keller Williams Realty, GBAR Director & GBAR DEI Committee Chair
Jennifer Twombly, General Manager, Rockhill Management, 2023 BOMA President

View GBREB Career College Showcase video

What steps can a listing agent take to verify that the person contacting them is really the owner of the property? 

There have been an increasing number of reports in Massachusetts relating to fraudulent sellers. Often, these scams are attempted on vacation properties or vacant properties because the legitimate owners may not be routinely physically present at the property. Some indicators of a potentially fraudulent seller are:

• They say are out of state/country and cannot meet in person;
• Refusal to engage in a video conference;
• Insistence on selling the property fast;
• Willingness to sell below market value.

If faced with a situation where perhaps the lead seems too good to be true, or there are some red flags, a diligent listing agent should:

• Seek advice from their broker;
• Request identification from the seller(s);
• Do a records search – do the names match?
• Insist on a video call;
• Do an internet/social media search for the seller(s).

If the seller is legitimate, they will likely be agreeable to the efforts to verify their identity and ownership status of the property. In those situations where the person is attempting to perpetrate a fraud, taking these additional steps will likely act as a sufficient deterrent to the scammer. 

Failure to engage in proper due diligence by the listing agent could result in significant damages to the listing agent, the brokerage, the owners of the property, and the buyers.

GBREB, Massachusetts Housing Coalition and the Massachusetts Homebuilders and Remodeler’s Association Take Action to Oppose 2024 Rent Control Ballot Question

The Greater Boston Real Estate Board, Massachusetts Housing Coalition (MHC) and the Massachusetts Homebuilders (HBRAMA) and Remodeler’s Association recently took the first step in opposing a 2024 ballot initiative to bring back rent control. 

Before a question can be put before the voters, it must take clear several procedural steps. One of the first steps is a review by the Massachusetts Attorney General’s Office to determine if complies with Article 48 of the Massachusetts Constitution. As part of that review, GBREB, MHA and HMRAMA recently submitted a legal memorandum outlining concerns that the question did not meet the constitutional muster to move forward. 

Attorney General Andrea Campbell then has about a month to decide which of the over 40 questions on a wide variety of topics should advance.  

The ballot question process is independent of legislation currently pending at the State House to bring back rent control including the recent home rule petition in Boston filed by Mayor Michelle Wu.

Click here to see an explanation of how a voter referendum is added to the ballot in Massachusetts.

Please visit gbreb.com/advocacy for more information.

Article Courtesy of: State House News
By: Sam Doran

As renters and would-be homebuyers face an affordability crisis, a leading trade group for the people who facilitate home sales is eyeing new building projects as the solution.

"Rent control tries to attack a symptom of our lack of building. And that's not the way to fix the issue. We need to build more housing," Justin Davidson told Mass. Association of Realtors members as they prepared to visit House and Senate offices Monday.

Elected officials in Boston are among those trying to tackle the affordability issue by capping rent increases, which Davidson, the association's government affairs director, called a "harmful" policy.

"If we build enough housing, if people have the options of where to live and what type of home to live in, we don't need rent control," Davidson said.
 he problem without invoking rent control, and supports a tax-deductible savings program (H 2727 / S 1787) to help people bank away up to $5,000 per year to put toward their first property.
 
A Rep. Angelo Puppolo bill pertaining to zoning reforms was touted by the realtors as a top priority, featuring increased by-right zoning for multifamily housing and so-called inlaw apartments, and a lower local threshold to win approval for variances and special permits.

"So much housing in Massachusetts is reliant on a special permit or a variance, and a supermajority threshold is so incredibly difficult to meet," Davidson said of the proposed move to a simple majority for those votes.

Lt. Gov. Kimberley Driscoll, a former Salem mayor, recalled that realtors "were with us" on housing goals in the Witch City, and were "standing up in zoning meetings, supporting the conversations in the local watering holes to promote projects."

"There's 351 cities and towns in this state. The state doesn't build housing, it happens in the ground, in the places you live, where you work, where we need it, where it's also hard to get done," the lieutenant governor said.

The Realtors Association opposes transfer tax and rent control bills that many housing advocates are promoting as possible solutions, and Davidson also lumped the transfer tax into a category of "harmful policies."

"You've worked with buyers that know that they can't just come up with a few thousand extra dollars to close the deal," Davidson said, adding that transfer fees are "exclusionary."

Legislation to create a local-option transfer fee has been pushed by proponents who hope to apply the fee to transactions greater than $1 million, although an enabling bill has provisions in it to allow it to apply in any community.

Other association priorities include a real estate licensure bill dealing with required coursework on diversity and fair housing law (H 265 / S 166), and proposed tax-exempt grants for owners of houses with flawed pyrrhotite concrete foundations (S 495 / S 2242).



     



                      


If you missed the REALTOR® Day on the Hill event, visit MAR's website here to learn more about our Legislative Priorities, What REALTORS® Support & Oppose, as well as background information on the event.