Webinar Replay: Real Estate Lawsuits Updates – What You Need To Know For Your Relocation Program
There has been a lot of discussion about the significant changes brought about by the National Association of Realtors (NAR) rulings and a need for mobility managers and organizations to understand the implications for mobility programs. Sirva has been monitoring the situation, clarifying the impacts on processes, defining approaches, and sharing what mobility managers need to know about these latest developments.
The latest event in Sirva’s 2024 Continuing Education Webinar series — Real Estate Lawsuit Updates: What You Need To Know For Your Relocation Program — hosted by Sirva’s Jeff Margolis, Executive Vice President and General Counsel, provides an overview of today’s real estate landscape, specifically the impact of ongoing lawsuits against NAR and how they impact relocation programs. This webinar covers how:
- Current commission practices may affect your relocation strategies
- Sirva has been preparing for these changes and the actions we are taking
- Industry peers are approaching these changes and addressing any potential relocation policy changes
What’s Changed?
The webinar goes into more detail on what buyer brokerage is and the changes that have occurred, but here are the highlights, including:
- Buyer agency agreements are required for NAR members.
- The amount the buyer broker will be paid must be specified, it cannot be open ended, zero or modified.
- Buyer brokers cannot be paid more than what is agreed upon.
- Offers of buyer broker compensation are prohibited in the MLS, but can be provided on the broker’s site.
- There are changes to the listing agreements between transferring employees and listing agents that clearly outline how much the listing agent is receiving and how much the seller is willing to pay towards buyer compensation.
- NAR rules may impact renters as well, which could result in renters paying commissions if the landlord does not agree to pay the commission.
- Updated paperwork exists for new moves, as well as for all in-process moves.
Sirva Policy Recommendations
While this situation is fluid and subject to change, there are some policy recommendations we are making to clients at this time:
- Home sale – we recommend continued payment of full commission.
- Home purchase – we recommend not covering buyer broker commissions at this time.
- Relocation policy - update your relocation policy language to be clear on what is included in home purchase benefits and establish well defined exception and escalation protocols.
- Employee engagement – monitor your relocating employees’ situations on a case-by-case basis, keep the lines of communication open, and continue to track the market for changes.
Ensuring Your Program is Ready
- Be flexible. Know that this is a fluid situation, and changes will be ongoing.
- Plan your course. Review the impacts of recent changes on your program and processes to determine your approach and any potential policy updates.
- Learn from the experts. Understand the value of Sirva’s Preferred Broker Network, as well as the value of pre-approvals with Sirva Mortgage.
- Stay educated. Keep an eye out for updates from Sirva as we continue to monitor the industry and markets for further clarifications.
Watch our webinar replay for more insights on what you need to know about navigating recent real estate changes and supporting your relocating employees. If you would like to have further discussions on this topic, please contact us at concierge@sirva.com or reach out to your Sirva representative.
.png?sfvrsn=d82fa451_0 "home buying process blog")
