Article:
A legal settlement in a case targeting US real estate agents could signify a decrease in the cost of real estate transactions. The National Association of Realtors (NAR) and property firms were implicated in lawsuits for allegedly inflating sales commissions.
The settlement allocated a substantial **reparation** of $418m (£328m) in damages and was declared last Friday. This decision necessitates NAR to lessen commissions and facilitate buyers to **bargain** fees, which may decrease costs associated with buying and selling a house.
The NAR, based in Chicago, stated that approximately a million of its members are encompassed by the settlement, still subject to court approval. They operate a database named the multiple listing service, or MLS, and mandate homeowners to offer a set commission rate before their properties are listed.
With no such requirement, potential homebuyers now have the **liberty** to negotiate lower commission rates or agree on a fixed-price fee for sales. The settlement also encompasses provisions that might reduce transaction costs. Nykia Wright, NAR’s interim CEO, applauded the settlement, saying it preserved consumer choice and protected their members.
The **provisions** of the settlement, commencing in July, do not necessitate the property companies or NAR to confess any wrongdoing. Numerous other lawsuits have not been resolved yet, and there’s a potential federal investigation underway.
Robert Braun, a Chicago-based lawyer, described the settlement as a significant **deviation** from the norm but remained uncertain whether it would influence housing prices.
Vocabulary Definitions:
1. **Reparation**: Compensation paid for harm or injury. In this context, it refers to the damages that NAR has to pay in the settlement.
2. **Bargain**: Negotiate the terms and conditions of a transaction. Here, it refers to buyers negotiating lower commission fees.
3. **Liberty**: The state of being free; the power to do as one pleases. In the article, buyers now have the “liberty” to negotiate commission rates, giving them more freedom and choice.
4. **Provisions**: The act of providing or supplying something for use. In legal terms, it can refer to a clause in a contract or agreement. The settlement includes provisions that may reduce costs.
5. **Deviation**: An action, behavior, or condition that is different from what is usual or expected. Here, it refers to the significant changes brought by the settlement in real estate practices.
Vocabulary List:
- Cancellation (noun): The act of calling off or postponing an event.
- Refunded (verb): Given back money that was paid.
- Transparency (noun): The quality of being open and honest.
- Compensation (noun): Somethingtypically moneyawarded to someone in recognition of losssufferingor injury.
- Allegedly (adverb): Used to convey that something is claimed to be the case or have taken placealthough there is no proof.
- Implicated (verb): Show to be involved in a crime.
