of California Association of Realtors (Central African Republic) is apparently Department of Justice.
The association announced Wednesday it was releasing the new, updated form after a delay caused by the Justice Department opening a formal investigation into CAR in late June. The Justice Department said it was concerned the form may contain loopholes that could allow agents to circumvent the new rules. National Association of Realtors (NAR) Antitrust Settlement.
CAR President Melanie Barker, in a statement, told association members to pay particularly close attention to one change: the removal of listed broker compensation offers, a thorny issue at the center of nationwide litigation against NAR.
CAR plans to release the forms on July 24, which it believes will give agents time to review the changes before the settlement’s new rules go into effect on Aug. 17.
“While we recognize that the compensation offers are legal and valid, we still believe this change is in the best interest of our members and consumers,” Barker said in a statement. “Our goal with this change is to act proactively in line with what industry practice should be.”
“We know change is difficult, but we also understand that CAR must lead the way within our industry, as we have always done.”
At the time the DOJ notified CAR of its investigation, NAR’s new president, Kevin Sears, attended a closed-door meeting with Deputy Attorney General Jonathan Cantor. Sears then told NAR members that the DOJ was “closely monitoring” the industry as the Aug. 17 deadline approached.
“To be clear, NAR and I personally oppose any attempt to avoid the settlement,” Sears wrote on RealtorHub, an NAR member message board.. “Any changes in practices should be implemented fully and in good faith to promote consumer empowerment, consumer choice and healthy competition.”
The Justice Department’s investigation follows an analysis by University at Buffalo law professor Tanya Monestia, whose report concluded that CAR’s latest buyer representative and broker compensation agreements are “barely readable” and that “no seller is likely to read, much less understand, this monstrous document.”
But organizations that want to avoid Justice Department scrutiny will face a tough task. In addition to the CAR investigation, the Justice Department has REX Real EstateAppeal of antitrust lawsuit against NAR and JiroAlthough voluntary, they argue that “bans on mixing” could encourage anti-competitive behaviour.
This is another sign that the Justice Department still intends to play a role in the aftermath of the settlement.
“The Department of Justice has not yet stopped its oversight of this industry.” Real Trend Consulting Said Housing Wire In response to the DOJ’s investigation into the CAR forms, “It appears their sole intent is to intimidate the industry. It would be a step too far for the DOJ to manipulate the CAR forms, or any form that anyone else has created.”
