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As we adjust to NAR lawsuit verdict fallout, brokers must adopt strategies to to increase transparency, nurture agent relationships, and retain market share.

The real estate sector is currently at a critical juncture following the National Association of REALTORS® NAR lawsuit facing a monumental $1.78 billion judgment for purportedly conspiring to inflate commission rates. This development is particularly consequential for brokers in smaller firms, as it signals the potential for a cascade of similar legal challenges that could question traditional industry practices. 

As the dust settles from the NAR’s significant $1.78 billion judgment, brokers are tasked with leading the charge towards a redefined industry that prioritizes ethical conduct and transparency. The reorganized strategies presented here are not merely defensive tactics; they are proactive steps towards building a resilient, trustworthy real estate practice. The collective efforts of brokers who adopt these measures will shape a future where the industry is known for its integrity, ensuring that this legal milestone marks the beginning of a new era of trust and ethical standards in real estate. 

Brokers must now take decisive, strategic action to not only defend their practices but also to foster a culture of transparency and ethical operations.

Here’s a restructured set of strategies for brokers to fortify their positions: 

1. Service Excellence: Elevate customer service to paramount importance to mitigate dispute risks and legal exposure. 
2. Commission Clarity: Formulate transparent commission structures that clients can comprehend and trust. 
3. Ethical Governance: Commit to the highest ethical standards, potentially establishing a committee to oversee ethical practices. 
4. Legal Literacy Programs: Roll out comprehensive educational initiatives on antitrust laws for your team. 
5. Defensive Insurance: Review and ensure your insurance policies provide ample coverage for antitrust litigation defenses. 
6. Client Relationship Building: Strengthen and maintain transparent client relationships to emphasize the value of your services. 
7. Interpret the Verdict: Gain a deep understanding of the NAR judgment and its implications for your business practices. 
8. Secure Technology Practices: Ensure that your technological systems are secure and compliant with data protection laws. 
9. Ethical Competition: Promote fair competition within the confines of antitrust legislation. 
10. Image Cultivation: Develop and maintain a public image that reflects a strong commitment to ethical real estate practices. 
11. Audit for Compliance: Conduct thorough audits to ensure your brokerage operations comply with antitrust laws. 
12. Proactive Industry Engagement: Keep a finger on the pulse of industry trends and legal developments that could impact your business. 
13. Diligent Documentation: Implement a robust documentation process to validate the fairness of your commission structures. 
14. Preventive Legal Guidance: Seek out preemptive legal advice to navigate the complexities of real estate law. 
15. Collaborative Networking: Engage with professional networks to share and gain insights on best practices and legal evolutions. 
16. Bespoke Commission Structures: Move towards personalized commission agreements that detail fees and address transparency, moving away from standard MLS-provided contracts. 
17. Resolution Pathways: Embed alternative dispute resolution options like mediation or arbitration in contracts. 
18. Continuous Policy Revision: Maintain a regimen of regularly updating policies to align with the evolving legal environment. 

Related reading:  7 Ways Real Estate Leaders Can Help Agents Stay Strong Through the NAR Lawsuit Fallout

Here is a comprehensive resource and training hub that you can share with your team! NAR Lawsuit Resources and Training

Know that agents do NOT have to go it alone in this market. Our goal is to bring the tools, training, and coaching each needs to not only survive the shifts – but build solid, dependable foundations they can count on and help them build clients for life. If that sounds like a goal that can help you reach YOUR goals – then join us for our Free Weekly Real Estate Webinar Training Series! Click below to register for the next one!

Darryl Davis is an award-winning international speaker, real estate and business coach, and best-selling author of three books, all published by McGraw Hill Publishers.   

For more than 35 years, Darryl has spoken to and trained more than 100,000 sales professionals around the globe to more than double their production year after year. His book, How to Become a Power Agent in Real Estate, tops Amazon’s charts for one of the most sold books to real estate agents.   

He was awarded the Certified Speaking Professional (CSP) designation by the National Speaker’s Association which is given to less than 2% of all speakers worldwide.   

Whether from a stage or Zooming into a virtual room, Darryl’s extraordinary humor, relatability, and natural gift for teaching real-world, results-producing skills and mindsets to audiences have made him a client favorite throughout his career.   

Audiences will laugh, learn, and ultimately walk away better prepared for a changing world, with the tools, skills, and training they need to build their businesses with more ease and less stress and to design lives and careers worth smiling about.   

Bring One of Darryl’s W.O.R.K. Topics to Your Organization!  

By providing your agents with the knowledge and insights they need to stay ahead of the game, you can ensure that they are equipped to handle any situation that comes their way! Contact us here to learn more!