Due to recent legislation, Americans looking to (re)enter the housing market are reading sensational headlines about a significant change in how homes are bought and sold.
The catalyst for all this brouhaha? A $418 million settlement reached by the National Association of Realtors in response to an antitrust lawsuit. This decision is set to abolish the longstanding and widespread practice of expecting buyer and seller agent commissions to be paid from the seller's net proceeds. The legal action stems from a staggering $1.8 billion verdict in Kansas City, Mo., which cited industry practices that as the plaintiffs argued artificially inflated commission rates. Faced with numerous similar lawsuits, the association opted for a nationwide settlement.
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