Real Estate Transaction Fees: An Upending Verdict
A guilty verdict was handed down by a federal jury on October 31, 2023 that threatens to upend the cozy financial relationships enjoyed by agents representing Buyers and Sellers during the real estate transaction.
In the antitrust suit, the jury held the National Association of Realtors and large residential brokerages liable for $1.8 billion for conspiring to keep real estate commissions artificially high. The verdict will be appealed, so stay tuned!
Real Estate Transaction Fees
Under the terms of the verdict, Seller’s agents will no longer be able to offer a commission split to Buyer’s agents upfront in exchange for access to online listing venues. If the verdict stands, the $100 billion in real estate commissions presently paid annually to Buyer’s and Seller’s agents will be subject to competitive market pressures.
The Evolving Role of Buyer’s Agent
The role of Buyer’s agent was the focus of the lawsuit. Under new arrangements anticipated by this court’s verdict, the role of Buyer’s agent will be subject to negotiated fees and services. It’s anticipated that many Buyers will forgo the services of a Buyer’s agent altogether!
Role of TC Certified™ Attorney
In a competitive environment, real estate attorneys are likely to play an increasing role as Buyer’s representatives during the real estate transaction. The suite of Timely Contract® legal solutions gives Buyers the opportunity to negotiate that Sellers pay for any Timely Contract® solution that results in a closed escrow.
Real Estate Transaction Fees in Focus
The purchase or sale of real estate is complicated. With so much on the line, it’s better to be safe than sorry!
Timely Contract® Legal Solutions
- TC Review: Contract review of documents to which you are committed.
- TC Drafting: Custom document drafting for a document as unique as your real estate transaction.
- TIER®: Basic legal due diligence regarding exceptions to title insurance.
- TIER Plus®: Customized legal due diligence regarding risks of federal, State, Tribal, or local rules, regulations, and laws.
Use Timely Contract® to avoid common problems of the real estate transaction … and sleep better at night!
This posting is not legal advice. Legal advice is based on specific facts. This information is necessarily general in nature.