The NAR settlement deadline nears; How Ryan Serhant rose to the top... and more

The best national real estate stories from The Real Deal Aug 03, 2024 [View in Browser]( | [$1 for 1 Month]( [The Real Deal Logo](   [The National Logo](   In this week’s newsletter, we take a look at what the Aug. 17 NAR settlement deadline might mean for the industry. Plus, how Ryan Serhant went from a celebrity broker to CEO, a look at Kamala Harris and Donald Trump’s real estate portfolios, and how Regulation D could open syndicators up to fraud suits. These stories and more below.   The NAR settlement deadline nears It’s August. And for the National Association of Realtors, the clock is ticking on major policy changes. In case you forgot, last year the nation’s largest trade organization lost a major antitrust case that accused it of conspiring with the nation’s largest brokerages to hike agents’ pay. As part of the [settlement](, NAR will restrict listing brokers from offering commissions to buyers’ agents on multiple listing services it controls. For some agents working with potential buyers, this will mean they need to get signed commission agreements before taking them on home tours. That change goes into effect in just under two weeks. Some platforms and brokerages have already laid out new laws to help brokers deal with the changes. Zillow rolled out an [agreement in May]( offering home touring agreements for buyer’s agents. eXp last week [unveiled a new listing agreement]( that scraps commission sharing with buyers’ brokers in what CEO Leo Pareja called the company’s “best interpretation of the rule changes.” All this is happening in the middle of earnings season no less, and as brokerages have to face the public amid pressure from high rates, a looming election, uneven markets, and more. Still, some execs took sunny perspectives on the new normal. Anywhere Real Estate, the parent company of Sotheby’s, Corcoran and Coldwell Banker, which opted to [pay $83 million to settle]( the commission suits in September, said it has already rolled out buyer agreement templates and that its brokerage websites will display offers of broker compensation. CEO Ryan Schneider said his medium-term outlook on the market was “quite strong.” Compass CEO Robert Reffkin [echoed the optimism](, saying that he doesn’t expect the rule changes to affect revenue for the company. Real estate is good at finding silver linings. But for some agents at least, needing signed buyer agreements will add another barrier for them in the client acquisition process. It’s yet to be seen whether the hurdle will knock agents down. At the least, the lack of clarity could slow them down a bit. Nourmand & Associates President Michael Nourmand told [The Real Deal]( that boutique brokerages like his own have a competitive advantage because it’s easier for brokers to get answers from leadership. He said he’s fielded calls from agents at big firms with questions about the changes. Even once the settlements are paid and the changes are implemented, NAR isn’t out of the woods. The specter of [federal investigation]( is looming. The U.S. Justice Department [broke its silence]( on commission practices in May, indicating that it might intervene in new brokerage models that crop up in the wake of the changes. In June, a face-to-face meeting between the DOJ and NAR prompted residential leadership to warn its members against exploring “loopholes” in the rule changes and to expect more inquiries into industry practices. The California Association of Realtors [was a quick target]( after the trade group’s updated paperwork for home sales prompted a “formal inquiry” by the DOJ. We’ll soon see what these rule changes really mean. For now, it’s clear that the uphill battle NAR faces climbs beyond Aug. 17.   Together with Leyster Capital Flexible Financing For Real Estate and Beyond Leyster Capital meets the global liquidity needs of families, private individuals, and other substantial asset owners. We creatively and efficiently leverage multiple asset classes, including real estate, collectibles, and financial assets. Our expertise and global resources give our borrowers the advantage of timeliness, certainty and flexibility. [Leyster Capital](   [I'm an image]( Can Ryan Serhant scale a national brokerage built on his personality? Just four years after launching his eponymous firm, the celebrity broker-turned-CEO and his team rank among the top brokerages in the Big Apple. [I'm an image]( Harris, Trump real estate portfolios paint stark contrast Kamala Harris and Donald Trump have very little in common aside from their ambition to be the next president. [I'm an image]( Syndicators’ favorite fundraising tool — Regulation D — could open them up to fraud suits As syndicators fail to finish renovations and deal with rising rates, angry limited partners could consider suing for fraud.   Advertisement   [I'm an image]( [Sponsored Private Debt Emerging as CRE’s Funding Hero]( [I'm an image]( J-Lo scores $23M for NoMad penthouse It’s been a rough year for the Bronx-born diva, but she did manage to get $23 million for her Manhattan penthouse at 21 East 26th Street. [I'm an image]( Nir Meir asks out of Rikers to Long Island apartment as he awaits trial A judge denied the former high-flying HFZ Capital executive's request to lower bail, for now. [I'm an image]( Feds want to seize Miami broker Stephen Costa’s Kendall home In the latest indictment, the Scope Realty co-founder allegedly received $384K from an illegal prescription drug racket to partially pay for property. 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