A note and Q&A that Katie Johnson shared with state and local AEs earlier today.
Hi all,
I’m writing to provide an update regarding the proposed settlement agreement we announced on March 15, 2024, to end litigation of claims brought on behalf of home sellers related to broker commissions.
As expected, Plaintiffs’ counsel today filed a Motion for Preliminary Approval of this agreement with the federal court in the Western District of Missouri. Importantly, this filing initiates the 60-day time period during which all REALTOR® MLSs, brokerages with 2022 total transaction volume for residential home sales in excess of $2 billion, and non-REALTOR® MLSs who want to be covered by the settlement must take action. The deadline for these actions is June 18, 2024.
- REALTOR® MLSs: In order to be released under the settlement agreement, all MLSs wholly owned by REALTOR® associations must agree to and execute Appendix B – REALTOR® MLS “Opt In” Agreement and return it to the email addresses [email protected], [email protected], and [email protected] within 60 days.
- Brokerages with 2022 total transaction volume for residential home sales in excess of $2 billion: In order to be released under the settlement, eligible brokerages must agree to and execute Appendix C – Brokerage “Opt In” Agreement and return it — along with the required documentation and indication noted in paragraph 20 of Appendix C — to the email addresses [email protected], [email protected], and [email protected] within 60 days.
- Non-REALTOR® MLSs: In order to be released under the settlement, MLSs not wholly owned by REALTOR® associations must agree to and execute Appendix D – Non-REALTOR® MLS “Opt In” Agreement and return it — along with the required indication noted in paragraph 20 of Appendix D — to the email addresses [email protected], [email protected], and [email protected] within 60 days.
- For questions about completing an opt-in agreement, please contact Mike Rohde at [email protected].
For access to the full settlement agreement, which includes the relevant appendices, please visit facts.realtor. We will also make fillable versions of these appendices available on facts.realtor in the coming days. On facts.realtor, you will continue to find the latest FAQs and settlement resources.
We expect that the Court will rule on the motion for preliminary approval soon. The practice changes set forth in the settlement agreement are slated to take effect in late July of this year, and class notice will take place no earlier than August 17, 2024. The settlement is subject to final Court approval, and we expect a motion for final approval of the settlement to be filed at the end of this year. For a more comprehensive view of what’s ahead, please see an estimated timeline here. Below this email, I have also included a handful of FAQs specific to this filing.
We will continue to keep you informed as the settlement process progresses and the time for implementation of the practice changes approaches. As always, if you have any questions, please don’t hesitate to reach out to me or my team.
Katie