Which of the top two stories of 2024 will make it to the finals? Inman readers voted today to consider the year’s most important stories.
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The contest is winding down and only four of this year’s top stories remain in Inman’s 2024 News Knockout.
Through voting, readers found that stories about commission lawsuit settlements, scrutiny of changing industry practices, and allegations of misconduct by high-end brokers had the most impact on the industry so far this year. According to readers’ votes, challenges to real estate portals and internal struggles among portals also had a major impact on the industry this year.
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Which of the top two stories of 2024 will make it to the finals? Vote now to find out.
Bracket 1: Commission Litigation Settlement vs. Portal
“NAR agrees to significant changes to $418 million fee settlement.”
Written by Taylor Anderson
The National Association of Realtors was in the spotlight this year when it announced a $418 million settlement in an Antitrust Commission case that has rocked the industry in recent years. The settlement, to be paid by NAR over the next four years, also provides for a series of industry practice changes that agents, brokers, associations and MLSs must implement by August 17, 2024.
In it, NAR agreed not to create rules that would allow listing agents to set compensation for buyer brokers. The association also enacted new rules prohibiting compensation offers from being made within MLS. Buyer brokers who are MLS participants are also required to enter into a written representation agreement prior to home tours.
The terms of the settlement fundamentally change the way real estate professionals view their roles as salespeople and advisors, and have already begun to impact how consumers view the industry, according to early data from Inman Intel.
“Real estate agent files lawsuit against Move and NAR over ‘fake lead’ scheme”
Written by Marian McPherson
Competition among real estate portal sites has intensified this year, with CoStar in particular spending big bucks to step up its marketing in hopes of taking the crown. But as competition has increased, so has increased scrutiny of how the portals operate, with a group of real estate agents claiming that Move, the parent company of Realtor.com, has accused the company of sending unvetted and fraudulent leads through websites such as Realtor. The company was harshly criticized in a class action lawsuit for selling . Com.
NAR and lead generation technology platform Opcity were also named defendants in the lawsuit for allegedly engaging in the sale of fake leads. The lawsuit alleges that senior executives and other executives at News Corp, Move, Realtor.com, and NAR were also aware of growing dissatisfaction with the quality of agents’ leads and “intentionally and consciously addressed that concern.” He claims that he ignored the incident.
On December 10, the defendants moved the lawsuit from Los Angeles County Superior Court to federal court, arguing that it is a class action.
Bracket 2: Changes in practice and bad behavior
“Michael Ketchmark: We’re watching your every move.”
Written by Andrea V. Brambilla
Ahead of a major change in industry practices that goes into effect on August 17, real estate professionals have been scrambling to ensure they have all approved documents and conversations with new clients. With new contracts being rolled out, canceled and re-rolled in some regions, some agents were left wondering if they were really ready for the big day.
In addition, lawyers for the seller-plaintiffs in the legal battle between NAR and industry players have indicated that they intend to continue to apply pressure, and that the industry needs to prepare for it.
Michael Ketchmark, lead attorney for the plaintiffs in the Sitzer case Mr. Inman said of the Barnett case: “If anyone thinks they can avoid this settlement agreement and the law by creating a new form or hiding this collaboration with a new website, they are wrong. If we feel that such behavior is being used as a way to avoid this, we will promptly take legal action.”
“Brother Alexander indicted in federal court on sex trafficking charges.”
lillian dickerson
In 2024, multiple people in the real estate industry were hit with lawsuits over allegations of sexual assault, sexual harassment, and kickback schemes. But the most shocking allegations came to light in the final month of the year when the once-popular luxury brokers, brothers Oren and Tal Alexander, were indicted by the federal government on sex trafficking charges.
The brothers have been under increasing pressure for months, with multiple lawsuits filed against them since last spring on charges of sexual assault, rape and drugging women. The brothers continue to deny the charges against them, even though dozens more alleged victims have come forward with charges against them.
As the days passed, their intermediary, Official Inc., began to go bankrupt, and they became the subject of an FBI investigation and were sued by their white label company, Side Inc., and on December 11th, He was arrested on charges of aiding and abetting an investigation. “operating a sex trafficking scheme,” the federal indictment states.
Email Lillian Dickerson
