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And now on with the show....
When Moehrl v. NAR was introduced in March, the industry response was largely… meh. Then in April, the Department of Justice reached out to the top MLS platform vendor, requiring documents and testimony about MLS data—with a specific focus on cooperating compensation. What is the DOJ likely to find? How might this information impact the class action suit? And what does it all mean for the real estate industry as a whole?
Today, Rob and Greg are discussing the Civil Investigative Demand (CID) CoreLogic recently received from the DOJ. They address the possibility of getting compensation data in the absence of a search feature on the MLS and predict whether the DOJ will find buyer-steering to be a widespread phenomenon.
Rob offers his take on why a directive requiring the disclosure of sold information would be more likely than new regulations, and Greg speculates that the industry is unlikely to stand by while the government eliminates cooperating compensation. Listen in to understand how the plaintiff attorneys in Moehrl v. NAR might use the DOJ’s findings and learn why organized real estate needs to take the lawsuit seriously.
What’s Discussed:
The Civil Investigative Demand CoreLogic received from the DOJ
Getting compensation data without a feature search on the MLS
What a DOJ study demonstrating buyer steering might achieve
Why disclosure of sold info is more likely than new regulations
How many brokers + agents script for the commission question
How DOJ findings might be used by attorneys in Moehrl v. NAR
How the Canadian Competition Bureau handled this issue
The potential impact of eliminating cooperating compensation
How it could take up to 10 years to resolve the class action case
Connect with Rob and Greg:
Resources:
Rob’s Post on CoreLogic & the DOJ
Rob’s 2015 Post on the NBER Study
Randy Ora’s Live Listing Presentation
Rob’s Post on the Brookings Institute Panel