As the president of the Fayette County Board of Realtors I hope to address growing consumer questions related to the verdict in the SITZER-BURNETT CLASS ACTION lawsuit.
Many consumers are wondering what the recent verdict in the case means for future real estate transactions in our area. The short answer is NOTHING.
Georgia has been ahead of the curve since 1994. For almost 30 years, Georgia Realtors have been governed by BRRETA (brokerage relationships in real estate transactions act).
BRRETA established consumer relationships in real estate to make transactions more transparent, as well as govern brokerage relationships with buyers, sellers, landlords and tenants.
This statute was further revised and amended in 2000 to clarify the duties of a real estate broker and relationships with clients.
This means that for almost 3 decades Realtors in the state of Georgia have been very clear about how brokers and agents are compensated in a real estate transaction.
In a typical real estate transaction, the listing broker offers an incentive to a buyer’s broker to bring a buyer to the transaction. Typically, the listing broker splits the commission, giving the buyer’s broker half of the commission.
Brokers operate under the agreement of the “cooperative compensation rule” which mandates that the listing brokerage specifies in the MLS what compensation is being offered to the buyer’s agent in a real estate transaction.
Without this arrangement, or clear compensation rule, buyers would have to pay their buyer agents directly, which could be damaging to homeownership aspirations for many, but will be detrimental to the first-time home buyer.
Eliminating cooperative compensation would likely force homebuyers to go without professional help during what is likely the most substantial and complex financial transaction they’ll make in their lifetime.
As a example, you wouldn’t hire your opponent’s attorney to…
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