Current MLS Class Action Civil Litigation to end the “Offer of Compensation.” Part 2

Current Class Action Civil Litigation to end the “Offer of Compensation.”
Where, when, and why is the MLS an “Offer of compensation.”
The Current Offer of Compensation in the MLS evolved from the passage of Agency Disclosure Laws across the US.
In this short video:
• Agency Disclosure Form mandated in CA. 1988
• Check Box for Who do you represent? Seller; Buyer; Dual.
• Under MLS rules of Subagency, all agents represented the Seller, the one paying the commission.
• Agents acting as a buyer agent and checking the Buyer Box on Disclosure form would find themselves in a dual agency because of MLS rules on subagency.
• The structure of the MLS subagency rules created legal liability for practitioners based on undisclosed dual agency, often unintended.
• In 1991, Ca Model Rules were developed to replace subagency with the Offer Of Compensation. Thus seeing an increase of buyer representation. NAR did the same change in 1996.
• MLS make changes to adapt to the market.
• MLSs are Evolutionary, not Revolutionary
• In 2019, started to see antitrust complaints alleging a conspiracy to fixing prices based on the MLS rules mandating the “offer of compensation” so the Seller pays the Buyer agent, and thus inflating commissions.
• Review the major antitrust cases focused on buyer broker compensation
• DOJ intervention is focused on eventually eliminating the MLS offer of compensation.
• Agency Disclosure Form mandated in CA. 1988
• Check Box for Who do you represent? Seller; Buyer; Dual.
• Under MLS rules of Subagency, all agents represented the Seller, the one paying the commission.
• Agents acting as a buyer agent and checking the Buyer Box on Disclosure form would find themselves in a dual agency because of MLS rules on subagency.
• The structure of the MLS subagency rules created legal liability for practitioners based on undisclosed dual agency, often unintended.
• In 1991, Ca Model Rules were developed to replace subagency with the Offer Of Compensation. Thus seeing an increase of buyer representation. NAR did the same change in 1996.
• MLS make changes to adapt to the market.
• MLSs are Evolutionary, not Revolutionary
• In 2019, started to see antitrust complaints alleging a conspiracy to fixing prices based on the MLS rules mandating the “offer of compensation” so the Seller pays the Buyer agent, and thus inflating commissions.
• Review the major antitrust cases focused on buyer broker compensation
• DOJ intervention is focused on eventually eliminating the MLS offer of compensation.

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