IMPORTANT NOTE:  20 CSR 2250-8.060 was rescinded by the MREC on July 30, 2023.  We have left this question here just in case there is still a question on the license test.  However, effective July 30, 2023, it is no longer required to even have the licenses in the office and starting in 2024, the MREC will no longer send licenses out.  It will be possible to download and print a copy of the license, but, since licensure can be verified by anyone on the MREC's Website, having the license available in the real estate office is no longer required.

Jury Sides with Sellers in Class Action Antitrust Suit Against NAR & Two Major Corporate Defendants!

On Tuesday, October 31, 2023, a jury in the Federal District Court in Kansas City, Missouri, sided with a class of home sellers, finding that the National Association of Realtors and two corporate defendants (Home Services of America, Inc. and Keller Williams Realty, Inc.) inflated commissions on home sales through the trade group's rules, causing $1.8 billing in damages to the sellers.

In the antitrust class action suit, the plaintiffs claimed that home sellers are unfairly being required to pay the commissions of buyers’ agents, because NAR rules prevent seller and buyer brokers from negotiating over the amount of commission that will be paid to the buyer's agent, and that such rules have inflated commissions.

Whether you agree with those allegations or not, at this point, the real estate industry is again under fire for antitrust violations.

It is likely that the case will be appealed to the Supreme Court.  Meanwhile, though, if you practice buyer agency, you should discuss the issue with your own legal counsel and the impact it might have on your practice.  You might want to begin explaining to buyers the benefits of having them pay the broker that is assisting them.  When the buyer pays the buyer's broker, the buyer's broker is free to negotiate for a lower purchase price because the seller's broker won't have to share his/her commission.  If you do this, be sure to check with the buyer's lender to make sure the buyer-paid fee can be included in the financing and to disclose the buyer-paid fee in the contract so that the buyer's lender can add it to the purchase price before calculating the loan amount.  The buyer should also talk to his/her accountant regarding the ability to write off a buyer-paid fee on his/her income tax as a "professional fee" rather than having to wait until the home is sold to write it off as a sales expense.

The MREC has a New Rule Book.

In August 2023, the MREC posted on their website a link to a new rule book.  To get a copy, go to their website at https://pr.mo.gov/realestate.asp and, on the left side, click on the "Important Links" navigation bar and then on the link "Rules and Statutes".  The booklet is in Adobe pdf format and may be saved to your device and/or printed out for future reference.

Real Estate License Fees are Going Up.

The MREC will be publishing some new rules for comment in December 2023, among which are proposed new fees.  If you want to be alerted when the proposed rules come out, on the lower left side of the MREC's Website, click on the link "Get MREC News" and subscribe.

NEW Online License Application, Renewal and Changes will Soon Be Available!

The MREC has announced that they expect to have their new online licensing system operational by the end of this year.  That means that the following will be able to be done online:

• New license applications;
• License transfers;
• License renewals;
• License changes (e.g. broker-salesperson to broker-officer or inactive to active license).

No more driving all the way to the MREC's office to submit an application and procure a "work permit".  It will all be able to be done online, instantly.

Read the MREC Newsletters!

In case you were unaware, the MREC has been issuing newsletters every January and July since July 2017.  The most recent newsletter came out in January 2021 and can be viewed on their Website at https://pr.mo.gov/realestate.asp.

To view older newsletters, click on the "General" tab on the left side of the screen and scroll down and click on the "newsletters" link.  Each newsletter is packed with important information.  The Janauary 2021 newsletter contains answers to important questions about real estate forms and which forms licensees may use.  MAREP members may find the MREC answers to frequently asked questions very interesting.

MAREP

Phone: (417) 293-1354 • E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.