The real estate industry is currently grappling with a whirlwind of legal challenges, and this episode cuts through the noise to provide clarity and crucial insights. Ed Zorn, VP and General Counsel for CRMLS, is back to break down the latest developments, including the Burnett appeal, the Zillow and Compass lawsuit, and the ongoing PLS vs. NAR litigation. Emphasizing that despite the legal theatrics, the industry is moving towards a more consumer-centric model, a shift that is ultimately beneficial for all parties involved. Ed reassures that the Burnett appeal is “extraordinarily weak” and unlikely to overturn the settlement agreement, stressing that the changes implemented in day-to-day broker and agent activities are here to stay.
We also cover the controversial topic of “private listings.” Ed debunks the arguments for such listings, highlighting their inherent risks for sellers and the real estate professionals promoting them. Explaining that claims of “monopoly” against platforms like Zillow are unfounded, as sellers have numerous avenues for exposure through the MLS and other platforms. Clarifying the distinctions between exclusive and open listings, advocating for open listings as the true pathway to seller choice for unique properties that may not fit the MLS model. Calling on agents to prioritize transparency and full market exposure for their clients to avoid future litigation.
We also warn against the potential liabilities associated with private listings. Ed predicts a surge in litigation from sellers who realize they may have received less money for their homes due to limited market exposure. He also touches on the re-opened PLS vs. NAR lawsuit, dismissing it as “very weak” due to the existence of open listing agreements. The hosts conclude by offering powerful arguments for agents to use when competing against those who push private listings, emphasizing the longer sale times and lower prices often associated with such practices. This episode is a must-listen for real estate professionals seeking to navigate the complex legal terrain and secure their clients’ best interests.
10 Key Takeaways
- The Burnett appeal is likely to fail and will not reverse current real estate settlement agreements.
- Industry changes, including the move to a consumer-centric model, are here to stay regardless of appeal outcomes.
- The Zillow and Compass lawsuit is “extraordinarily weak” from Compass’s perspective, with Zillow expected to win.
- Zillow has the right to exclude listings that hide from consumers from their platform.
- Zillow is not a monopoly because property listings are widely available across numerous real estate websites.
- “Private listings” (or hidden listings) lead to properties taking approximately three weeks longer to sell.
- Selling a property off-MLS carries significant legal risks for listing agents due to potential harm to sellers.
- Informed consent forms may not protect agents from litigation if sellers claim they were not fully aware of limited market exposure.
- Open listing agreements provide true seller choice and are not subject to MLS clear cooperation policies or Zillow’s ban.
- The PLS vs. NAR lawsuit is considered “very weak” and unlikely to succeed due to existing open listing options.
Episodes mentioned in the show:
- Episode 140: Why Private Listings are a “Ticking Time Bomb”
- Episode 133: Unshakable Wisdom: Surviving Decades in Real Estate
Connect with Ed on LinkedIn.
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