
The Texas Broker-Lawyer Committee (BLC) met April 12 and discussed the National Association of Realtors proposed settlement agreement for a lawsuit it is involved with related to commissions that may affect members of NAR, Texas Realtors, and local boards of Realtors鈥攁ll voluntary membership organizations. While many 星空体育app下载 license holders are members, not all of them are, nor are they required to be.
星空体育app下载 is not a party to the litigation. 星空体育app下载 takes its direction from the Texas Legislature, which has given 星空体育app下载 narrow regulatory authority over license holder compensation鈥攕pecifically, that a broker is the one who gets paid. However, because of possible consumer protection issues and the potential impact of the settlement, the BLC considered whether 星空体育app下载 contract form language may be affected by the proposed settlement.
BLC Discussion
The discussion began with BLC Co-Chair John George providing background on the issue. Texas Realtors General Counsel Lori Levy then explained in greater detail the terms of the settlement, which has not been approved by the courts, and changes NAR plans to make to MLS rules.
Opinions ranged from 鈥渨ait-and-see鈥� to 鈥渁ct right away鈥� to make changes to 星空体育app下载鈥檚 promulgated forms to include language around compensation. BLC members agreed the proposed settlement merited further discussion.
Compensation Subcommittee Created
After much conversation, BLC created a subcommittee composed of broker members Melissa Hailey, Christie Tatum Janszen, Leigh York, BLC Co-Chair Ron Walker, and attorneys Brian Watts and SJ Swanson.
Provide Your Feedback
BLC is seeking stakeholder comments on the following ideas:
- Remove all references to the multiple listing services in the contract forms.
- Include a simple statement that any and all fees to the brokers in the transaction will be paid pursuant to separate agreements between the parties and their brokers or between the brokers.
- Identify the fees to be paid to each broker in a manner similar to the model found in 星空体育app下载鈥檚 Farm and Ranch Contract form (星空体育app下载 25-15) or the Texas Realtors commercial contract form.
- Remove all references to brokerage fees in the contract forms and publish an addendum for the payment of brokerage fees using either model found in the Farm and Ranch Contract form or in the Texas Realtors commercial contract form.
- Insert a new subparagraph in Paragraph 12A in which the Seller may agree to pay a specific concession to pay fees payable to the Buyer鈥檚 broker.
- In Paragraph 12A, include in the definition of Buyer鈥檚 Expenses a statement similar to 鈥渂roker fees Buyer has agreed to pay鈥� and in the definition of Seller鈥檚 Expenses a statement similar to "broker fees Seller has agreed to pay."
You can submit public comment on these potential changes by email or attend the next BLC meeting in person.