What’s next for NAR after last month’s rule changes; Another real estate family feud unfolds... and more

The best national real estate stories from The Real Deal Sep 14, 2024 [View in Browser]( | [$1 for 1 Month]( [The Real Deal Logo](   [The National Logo](   In today’s newsletter, we look into how the NAR rule changes that were implemented last month have affected brokers. Plus, the dirty details of a real estate family feud in New York, a Brazilian mogul sues Douglas Elliman after unknowingly selling his estate to Jeff Bezos and we break down what’s next in the rape lawsuits against the Alexanders. These stories and more below.   What’s next for NAR after last month’s rule changes? It's been about a month since the National Association of Realtors introduced its rule changes, and while the dust is settling, the residential real estate industry is still feeling the ripple effects. NAR’s overhaul followed multiple lawsuits accusing the organization of inflating broker commissions, culminating in a $418 million settlement in March. This [settlement]( included a commitment to increase transparency around agent compensation, leading to changes in how commissions are displayed on multiple listing services (MLS). Sellers can no longer specify how much commission they offer to a buyer’s broker, and agents must secure signed agreements with buyers before showing properties. This shift is significant, and agents across the country are [still adjusting to the new system](. Early reactions are mixed, and the immediate impact varies depending on the market. In South Florida, agents say [there’s confusion all around](. The changes have created more work for buyers’ agents, and the primary challenge is introducing the concept of the buyer’s broker and touring agreements to clients, especially so early in the process. These changes have also placed more pressure on agents to educate buyers. Claudia Cobreiro, a real estate attorney in South Florida, noted that while the lawsuit intended to protect consumers, it's causing challenges for them in the short term. Los Angeles brokers echoed the [“figuring it out” sentiment]( at The Real Deal’s LA Real Estate Forum on Thursday. “When I’m going to listing appointments, every time now, the seller thinks that they don’t have to pay compensation,” LA broker Aaron Kirman said during the panel. Kirman then noted that he hasn’t had trouble getting buyers to sign the representation form as long as they believe the seller is paying for commission. Most sellers are still offering compensation to buyer’s agents despite the MLS changes. So far, we haven’t seen a substantial drop in commissions, though concerns remain about potential future reductions. At the same time, the market may be in for a boost soon. The Federal Reserve is days away from its next meeting, where it has [signaled that it will cut interest rates](. While mortgage rates don’t directly align with interest rates, they are more closely tied to 10-year Treasury note yields, which have been dropping in anticipation of a rate cut. This could spur more activity in the mortgage and housing markets, with lower rates potentially making home prices more affordable for buyers. Looking ahead, there’s still uncertainty. Many in the industry are asking if these changes are just the start of broader reforms. The Department of Justice seems to think more changes are possible. The DOJ, which has been scrutinizing NAR for years, recently received the go-ahead to resume its investigation into the group’s practices. NAR has vowed to fight, with [plans to petition the Supreme Court]( by Oct. 10. Meanwhile, [lawsuits continue to swirl]( around NAR and major brokerages. While the recent settlement addressed claims by sellers, homebuyer lawsuits are still moving through the courts, potentially leading to even more reforms depending on the outcomes. Agents still need to adapt, leaning into what’s always worked — building trust. But this is just the beginning, and more changes are likely on the horizon. We’ll see where this new era takes us.   Advertisement   [I'm an image]( In epic feud, Great Neck family seeks to hold 96-year old patriarch in contempt Plenty of real estate families have issues, but the Harounians of Great Neck are in a league of their own. [I'm an image]( Brazilian mogul who sold his waterfront Indian Creek property to Jeff Bezos sues Douglas Elliman A lawsuit claims Elliiman’s Florida CEO Jay Parker insisted the Bezos was not the purchaser when he really was. [I'm an image]( What’s next in the rape lawsuits, criminal probe around the Alexanders Accusations that top brokers Oren and Tal Alexander raped women in alleged attacks dating back to when they were in high school have rocked the world of residential real estate in recent months.   Advertisement   [I'm an image]( The rise and fall of #RETwit troll LPWhisperer After months of targeting some of the community’s most popular accounts, LPWhisperer went dark. [I'm an image]( India’s “King of Good Times” sells Sausalito home for $14.4M Embattled Indian liquor magnate Vijay Mallya sold his panoramic Sausalito home for $14.4 million, inching past a $14 million trade in Ross to become the most expensive sale in Marin County this year. [I'm an image]( “Sophisticated businesspeople” did $35M deal on handshake. Bad idea Investors say Shaya Prager owes them $10 million, but he says he paid. [I'm an image]( SL Green bought Aby Rosen’s 522 Fifth debt at 40% discount SL Green paid 60 cents on the dollar to buy the loan on Aby Rosen’s 522 Fifth Avenue. [I'm an image]( “100% legal”: TikTok syndicator faces 290 years in prison Teddy Miller illegally used social media to defraud investors, the SEC claims. [I'm an image]( LNR piles foreclosure suit on Accesso’s distressed office portfolio Major Chicago-area office landlord Accesso Partners has been struck with its second foreclosure lawsuit in the region as it stares down multiple office loan delinquencies.     [The Real Deal Logo]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( [YouTube]( [Manage Newsletters](link.therealdeal.com/manage/61n/preferences?email={EMAIL}&hash=c3ef811325e0489c79ef984bae8ea606) | [Unsubscribe](list=National Weekly) | [Privacy Policy]( | [Subscribe]( | [Advertise]( The Real Deal 450 West 31st Street, New York, NY 10001 ©2024 TheRealDeal. All rights reserved. [View Online](