Mauricio Umansky, CEO and co-founder of The Agency in Beverly Hills, tells business writers in Austin, Texas, he helped create a rival trade group to compete with the National Association of Realtors because NAR is “a cartel.” A proposed real estate court settlement over commission rates taking effect in August will create “the biggest mess on the planet,” a Beverly Hills celebrity agent said.
A federal judge in Kansas City, Mo., is scheduled to review a $418 million out-of-court settlement between NAR and plaintiffs attorneys in late November. Several national real estate chains have reached separate settlements, bringingBut under the terms of the settlement, the new rules must take effect on Aug. 17, well before the court hearing, NAR said. The judge gave the settlement his preliminary approval in April, the New York Times reported.
Under the settlement, those offers would be banned from MLS listings — although sellers still can make such offers by other means, like on their websites or over the phone. “There’s no standard right now,” he said. “… There is no standard six-months listing agreement. There is no standard anything. It’s all negotiable. It’s an absolute wild West.”
Umansky blamed the 1.5-million-member trade group for anti-competitive practices and for being self-serving.Supporters of the pocket listing ban argued when it was adopted that private, off-market sales excluded buyers, agents and could lead to racial discrimination. “NAR members have always appreciated and thrived in a competitive environment,” the statement said. NAR provides members with “industry leadership, best-in-class advocacy efforts, innovative tools, educational opportunities, leading economic research, national property data and other benefits.”