SmartMLS, Connecticut’s statewide Multiple Listing Service for residential real estate, announced on June 18 that it has filed paperwork opting in to the terms of the national settlement in the Burnett vs. the National Association of REALTORS® (NAR) lawsuit.
NAR had days earlier reminded brokerages with a residential transaction volume of more than $2 billion in 2022 and MLSs to opt in to its settlement agreement that would resolve claims brought on behalf of homesellers related to broker commissions by June 18. The Settlement Agreement is subject to final court approval, a hearing on which is scheduled for November 26, 2024.
According to a release from SmartMLS, although the listing services “was not a party to the litigation and had no opportunity to negotiate the terms of the settlement (and)…firmly believes that the claims that led to the national settlement were not applicable to Connecticut residential real estate transactions,” the MLS chose to join the agreement in order to “minimize disruptions to sellers and buyers, Connecticut REALTORS®, its REALTOR® association members, and all other stakeholders served by SmartMLS.”
“A robust, transparent, and universally adopted MLS is critical to providing real time market insights to sellers and homebuyers alike,” said SmartMLS President Michael Barbaro. “As Connecticut’s residential real estate industry navigates this period of change, SmartMLS is committed to preserving and protecting the open marketplace in the interest of the consumers it serves. While we were not a party to this litigation, opting in to the Burnett agreement is necessary to minimize disruption in the marketplace.”
SmartMLS plans to be actively monitoring the impact of the practice changes mandated by the agreement to determine whether they harm historically disadvantaged communities, low down payment buyers, and first-time homebuyers, the release said. SmartMLS added it is concerned that the unintended consequences of the Burnett settlement will undermine years of efforts by lawmakers and elected officials to promote transparency, fairness, and equity in the housing market.
The release also noted that U.S. homeowners have an average net wealth that is 400% higher than that of renters, and homeownership has proven to have a wide, positive influence on educational achievement, civic participation, and health outcomes.
“Homeownership is the most effective way to build wealth that can be passed down from generation to generation,” said Barbaro. “The path to homeownership should be broadened, not limited. Anything that removes transparency is an impediment to home ownership. SmartMLS will continue to work toward ensuring that Connecticut’s residential real estate marketplace continues to evolve in a productive, equitable, and transparent manner.”
