Commercial

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.

Below are some clarifying points and the top Q&A on this subject.

As always, you can find additional information about NAR’s commercial program at commercial.realtor. For additional information about the settlement agreement, please visit facts.realtor. 

Clarifying 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:
     • 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
     • 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. 

• Augusta Chamber of Commerce
• Cottleville/Weldon Spring Chamber of Commerce
• Foristell Chamber of Commerce
• New Melle Chamber of Commerce
• O’Fallon Chamber of Commerce
• St. Charles Regional Chamber of Commerce
• Western St. Charles County Chamber of Commerce

• BOMA (Building Owners and Managers Association)
• BOMA Education
• ICSC (International Council of Shopping Centers)
• ISCS Education
• CCIM (Certified Commercial Investment Member)
• CCIM Education
• CRE (Counselors of Real Estate)
• CRE Education
• IREM (Institute of Real Estate Management)
• IREM Education
• RLI (REALTORS Land Institute)
• SIOR (Specialist, Industrial & Office Real Estate)

• Commercial Search
• Commercial Web Banners
• NAR Commercial  – Check out NAR’s commercial landing site
• NAR Commercial Advocacy/Legislation
• Commercial Education
• Commercial Research

RCA/NAR Info: Education

• • • Quadrennial REALTOR® Ethics Training – Developed by the National Association of REALTORS®. The course meets all learning objectives and criteria for the Quadrennial Ethics Training Policy (Policy Statement 48, NAR Code of Ethics and Arbitration Manual).

RCA/NAR Info: Get Connected

• • • Facebook

RCA/NAR Info: Law & Policy

• • • REALTOR® Action Center

RCA/NAR Info: Other NAR Divisions/Designations

• • • NAR’s Appraisal Division
    • NAR’s Auction Division
    • NAR’s Commercial Division
    • NAR’s Green Designation
    • NAR’s Resort and Second Home Division

RCA/NAR Info: Research

• • • Commercial Real Estate Research

2024 Events

January 25- Commercial Networking Luncheon

March 28 – Commercial Networking Luncheon

April 18 – Commercial Networking Luncheon

May 30 – Commercial Networking Luncheon

June 27 – Commercial Networking Luncheon

August 15 – Commercial Networking Luncheon

September 19 – Commercial Bus Tour

October 31 – Commercial Networking Luncheon

December 5 – Commercial Installation and Awards Celebration

**Contact Anna at anna@stcharlesrealtors.com for more information about the Commercial Division's events.