Rob discusses the 4 points of the NAR settlement and how this affects Rob Brooks Realty buyers.
Video Transcript: Hey! This is Rob at Rob Brooks Realty and I'm going to go over the four main parts of the National Association of Realtor settlement and how it affects particularly the buyers of Rob Brooks Realty. I'm going over this because the media has given some false or we'll just say some inaccurate information that has gone through so these four points should clear everything up.
Number One: National Association Realtors said they had no wrong-doing and in fact what they were doing was increasing competition and not decreasing competition.
Number Two: National Association of Realtors agreed to pay $418 million to the attorneys that they settled with and their clients.
Number Three: National Association Realtors said that they would require realtors could no longer promote or advertise in any way a commission from one realtor to another within the agent to agent, broker to broker private Multiple Listing Service. Which means that if you are working with Rob Brooks Realty as if you're the buyer for example and we are arranging showings not just with Rob Brooks Realty listings but with listings from all other realtor companies, not only are we calling to get the showing instructions and arrange the times for each showing, but also we are checking to see what is the compensation that is offered over the phone we're finding out to each buyer broker that brings in a client to closing. So and it could be a variable amount of commissions that's offered there.
The fourth thing that is offered is the National Association of Realtors now requires that all buyers working with all Realtors must sign a buyer broker agreement before entering the first property. Now that could take a variety of different forms and so I'm going to tell you what form it takes with Rob Brooks Realty. There's two main premises in this form. One is that the buyer says okay if the seller does not offer compensation or if they offer a reduced rate then the buyer will make up the difference in the purchase of the property for the Rob Brooks Realty Professional Services. Two is the buyer can cancel at any time before they have selected a property, so in other words if a buyer is just interested in looking at one property and that's it okay so the buyer broker agreement is signed, we walk into the property and they walk back out and the buyer says “thank you for your services. I want to cancel this agreement”. Great, we cancel it right then there is a zero cancellation fee.
So I hope this clarifies what happened with the National Association real tours settlement and what that means for buyers of Rob Brooks Realty. I am Rob of Rob Brooks Realty. You're welcome to give me a call if you have further questions on that. Thank you.