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Rulebook Rewrite
Five years, $1B, and a massive shift in real estate commissions
Splits and Caps Daily: Action for Agents
February 3, 2025
📈 Market Move:
Commission Chaos Coming to a Close
The gavel's down, and the Sitzer/Burnett case is officially wrapped. After five years of legal battles that rocked the real estate world, the final judgment confirms a massive $1B+ settlement that puts a (mostly) final stamp on sell-side commission lawsuits—at least for the brokerages and MLSs that opted in.
Who's covered? Pretty much every major player who settled—including thousands of agents, firms, and associations tied to the deal. Who’s not? 40 sellers who opted out and could still take their own legal shots. And while this settles the sell-side drama, the buy-side lawsuits are still creeping along.
The fine print? If you sold a home with an MLS-listed commission before August 17, 2024, you're likely getting a slice of the payout. But if your agent fumbled their fiduciary duty, this settlement won’t save them. The ripple effects aren’t over, and some big names (like eXp and Weichert) still have unfinished business in court.
Bottom line: The industry just got its biggest legal reset in history. The question now—what does a post-settlement real estate market look like?
🌟Quote of the Day:
"Every problem is a gift—without problems, we would not grow." — Tony Robbins
📊🤔 Agent Poll Results
On 1/31, we asked: CFPB: Friend or Foe?—Do you think the CFPB is helping or hurting real estate agents?
The results are in!
Helping – Keeps the industry fair and protects consumers. Love ‘em or hate ‘em, they keep the game clean: 0%
Hurting – Too much red tape, too many rules, and way too many ways to accidentally get fined: 0%
Both – Some rules make sense, others just make deals harder. It’s a mixed bag: 71%
CFPB? – I sell houses, not acronyms. 🤷: 29%
Looks like most of you agree—can’t have the highs without the lows. The game’s the game. Appreciate you all for chiming in! 🚀
🎉 Fun Fact of the Day:
Island for a Song: In Scotland, you can buy an entire island for less than the cost of a studio apartment in San Francisco. Sure, you’ll need a boat, but hey, privacy comes cheap when it’s surrounded by water.
📚 Book Recommendation:
"The Lean CEO: Leading the Way to World-Class Excellence" by Jacob Stoller — Ever wonder how some companies go from chaotic dumpster fires to smooth, well-oiled money machines? The Lean CEO breaks down exactly that—how top leaders ditch the inefficiencies, cut the fluff, and create businesses that run like a Tesla on autopilot.
This isn't just another "rah-rah leadership" book. It takes the core principles of lean—the same system that made Toyota a beast—and shows how CEOs use it to build powerhouse companies with fewer headaches and more profits. You’ll get real stories from execs who mastered the art of doing less while making more (a concept real estate agents should love).
Takeaway? Whether you're leading a brokerage, building a team, or just want to stop drowning in busy work, this book is a playbook for getting lean, mean, and world-class.
Stop waiting for the stars to align—shine bright enough to realign them yourself.
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