– A new agreement between Keller Williams and Department of Justice (DOJ) will leverage a major directional change for the real estate industry.
– Keller Williams, one of the largest real estate companies globally, has been under the scrutiny of the DOJ for its policies which seemed to compel its franchisees to join and follow the rules of the National Association of Realtors (NAR).
– This probe has resulted in a proposed settlement where Keller Williams is mandated to explicitly inform its franchisees that offers of compensation to the NAR are not obligatory.
– Keller Williams has also agreed to revise training materials and discontinue rules requiring agents to join the National Association of Realtors.
– The industry giant will also be transparent about the compensation processes, giving the franchisees freedom to decide whether they want to incentivize the NAR.
– The DOJ’s supervision on this matter is part of broader efforts to enhance competition in the real estate brokerage business.

Unshackling Franchisees — No More Compulsory NAR Membership

Transparency Triumphs — Franchisees in the Driver’s Seat

Here’s our sizzling hot take on it!

This agreement symbolizes not just a win, but a ‘Super Bowl touchdown’ for Keller Williams franchisees. Previously, Keller Williams seemed like that strict headmaster, enforcing its agents to join the ‘NAR Club,’ sort of like the Ivy League of real estate. Now, it feels like that headmaster has gone on summer break, and the school is being run by the students!

And what a blast it is. It’s kind of like when P.E. is your last class on a Friday. Suddenly, agents don’t need to pull out their wallets to pay for compulsory yearly ‘Loyalty fees’. Plus, they don’t have to jump through all the hoops NAR loves setting up.

Imagine the possibilities. Agents strategizing and designing their compensation offers without the looming cloud of obligatory payments. And those training materials? They are marching straight to the editing desk for a face-lift!

However, this isn’t just about Keller Williams and its franchisees. The whole real estate brokerage field is being shaken up here — putting franchisee power back in style. It’s refreshing like sprinkling a lemon zest on your dull, mid-week salad! Change is knocking on the door of the real estate industry, folks, and it’s brought a giant bulldozer to demolish old conventions. Now let’s sit back and watch real estate agents grab their popcorn, turn on Netflix, and binge on liberty!

Original article: https://www.inman.com/2024/02/01/keller-williams-settles-sitzer-moehrl-commission-suits-for-70m/