Change Is Coming
REX CEO & Co-Founder Jack Ryan comments on the dismantling of traditional real estate's anti-competitive practices
On Friday, November 20, REX CEO & Co-Founder Jack Ryan sent the following company-wide email detailing the U.S. Department of Justice announcement and settlement with the National Association of Realtors (NAR) and its members' over longstanding anti-competitive practices.
I am sure by now you have all seen the news that the U.S. Department of Justice has brought a complaint against the National Association of Realtors and their MLS members for anti-competitive practices. The U.S. DOJ is especially harsh in condemning the way these organizations and their members have treated consumers. They also are very clear about how the NAR has interacted with real estate firms that are licensed brokers “that are not members of the NAR or the MLS”. As you know, there is only one such firm in the country.
The immediate result is the NAR and MLS members cannot bar REX from showing homes by blocking us from access to the Supra key, cannot claim any more that the buyer agent is “free”, can no longer prevent their members from disclosing the fee they are being promised by the seller for their buyer customer, and must dismantle the “boycott button” which had allowed traditional agents working with buyers to rank homes by the size of the commission which the seller is offering to the buyside agent.
DOJ clearly states they have the ability to pursue the other practices that are harming consumers, and that this lawsuit does not prevent the DOJ from bringing other actions in the near future for such rules as the linking of the sell-side fee and buy-side fee and other behaviors. We believe this is only the first step from the DOJ, but a major one, in the breaking up of the cartel that has hurt so many Americans.
The reason REX and the US government got to this point is because all of you. But for all of you, we would not have had the knowledge or platform to complain. But for all of you, we would not have been able to show the damage to the consumer. But for all of you fighting through the horrible behaviors of many buyside agents almost every day, we would not have been around to keep pushing the US Department of Justice.
It is also a major step forward for our three missions: 1) to reform one-third of the US economy which is consumer services, for the benefit of the customer, thereby becoming the best company in the world; 2) to advance your careers as fast as possible and 3) to help children whom we do not know, but we know need our help.
This is a great win for the American consumer, and for the REX team!
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