Agent commissions are getting more transparent — but critics still say the real estate industry operates as a ‘cartel’
Jeff Ostrowski | (TNS) Bankrate.com
When the National Association of Realtors (NAR) and major brokers last year lost a federal antitrust suit, the verdict unleashed new scrutiny of the industry and its practices. With new commission rules set to go into effect in August as a result of the settlement, critics — even some inside the industry — are growing louder, saying the National Association of Realtors is a “cartel.”
One vocal broker, Mauricio Umansky, head of the national real estate brokerage The Agency, thinks so. “It’s a monopoly,” says Umansky, who’s challenging NAR by heading an alternate organization, the American Real Estate Association. “They control everything.”
NAR disputes such a characterization. After all, the trade group is not just a small circle of powerful individuals: NAR has more than 1.5 million members across the U.S., and barriers to entry are relatively low. In most states, getting a real estate agent’s license requires no college degree and about 60 hours of classroom training.
