Burnett v. NAR Trial Updates

Louisiana REALTORS® • October 17, 2023

Updates provided by NAR

From Tracy Kasper, NAR President - Oct 31, 2023 1:19 PM 


Hi all, I have an important litigation update. After an 11-day trial in the case of Burnett v. NAR et al, the eight-person jury in a Kansas City, Mo., federal courtroom, came back Tuesday and found NAR and other corporate defendants liable in the case. 

 

This matter is not close to being final. We will appeal the liability finding because we stand by the fact that NAR rules serve the best interests of consumers, support market-driven pricing and advance business competition. We remain optimistic we will ultimately prevail.  In the interim, we will ask the court to reduce the damages awarded by the jury. 

 

In court, NAR presented evidence that consumers are better off and business competition is able to thrive because of our rules and how well local MLS broker marketplaces function. In fact, the NAR cooperative compensation rule for local MLS broker marketplaces ensures efficient, transparent and equitable marketplaces where sellers can sell their home for more and have their home seen by more buyers while buyers have more choices of homes and can afford representation. NAR also presented that REALTORS® are everyday working

Americans who are experts at helping consumers navigate the complexities of home purchases and advocates for fair housing and wealth building for all. 

 

NAR was formed 100 years ago because there was a need for a higher level of ethical practice. We should all be proud that REALTORS® continue to serve in that role. I know our mission to advocate for homeownership and always put our client interests first is unwavering. We recognize our legal team and outside counsel have worked tirelessly on this case. It will likely be several years before we reach a conclusion. 

 

I am grateful to our NAR staff and our 1.5 million members who work to serve their clients every day. We have an important shared purpose for consumers, and we could not achieve that without all that each of us do. 

 

Below are some key questions people may have that you can share. We will continue to keep you informed of any notable litigation milestones, and in the meantime, I encourage you to continue to refer to the Competition.Realtor website, which provides a comprehensive overview of and many resources for how REALTORS® and local MLS broker marketplaces benefit consumers. The need for each of us and every member to continue to express our value every day in as many ways as we can remains an imperative. 

 

Tracy 

Burnett Questions Answered 

 

In the case of Burnett v. NAR et al, on Tuesday, Oct. 31, the jury found NAR and the co-defendants liable. The plaintiffs claimed real estate commission rates are too high, buyer brokers are being paid too much and that NAR rules and corporate defendants’ practices lead to set pricing. 

 

The reality is that NAR rules prioritize consumers, support market-driven pricing and promote business competition. We stand by the fact that NAR’s guidance for local MLS broker marketplaces ensures consumers get comprehensive, equitable, transparent and reliable home information and that brokerages of any size, service or pricing model get a fair shot at competing. 


Following are answers to questions you might have. 

 

  • What are next steps legally and the timing? This matter is not close to being final as we will appeal the jury’s verdict, and we remain confident we will ultimately prevail. In the interim, we will ask the court to reduce the damages awarded by the jury. Due to the nature of appeals, this case likely will not be concluded for several years. 
  • What will be the basis for NAR’s appeal? We can’t speak to the specifics of that until we file our appeal, but we can say that we have a very strong legal basis for appeal.
  • Is there anything REALTORS®, brokers, state/local associations or MLSs need to do differently because of this verdict? Not because of this verdict. But NAR has emphasized for many years two important things. One is the use of buyer representation agreements, which maximize transparency by putting all agreements in writing to ensure clarity and understanding, as all members are obligated to do pursuant to the NAR Code of Ethics. These agreements formalize the professional working relationship with clients and detail what services consumers are entitled to and what the buyer agent expects from their client in return. Second, it’s also an imperative for members to continue to express that commissions are negotiable and set between brokers and their clients; explain how local MLS broker marketplaces promote equity, transparency and market-driven pricing for consumers; and persistently communicate the incredible value agents who are REALTORS® provide.
  • What does the future of buyer representation look like as a result of the verdict? This verdict does not require a change in our rules, but if class action attorneys had it their way, buyer representation would be very much at risk because many first-time home buyers, among others, couldn’t afford to pay for representation out of pocket. It’s important that members take every opportunity to express how they are experts who guide consumers through the financial, legal and community complexities of buying or selling a home.
  • Does NAR have the funds to pay the proposed damages or post a bond to file an appeal? NAR is going to appeal and has the funds to post bond, which allows us to proceed with our appeals and defer potential payment of damages. While appeals will take years, and we are confident we will ultimately prevail, we also are financially prepared for any final judgment.
  • How does this verdict affect other ongoing litigation, including the other seller lawsuit? It doesn’t. Cases are tried separately, and we remain confident we will ultimately prevail because we have a strong case we’ll present on appeal and because our rules are pro-consumer and pro-business competitive.
  • Is there any scenario where NAR would consider settling? NAR always has been open to a resolution that maintains a way for buyers and sellers to continue to benefit from the cooperation of real estate professionals and eliminates our members’ risk of liability for the claims alleged. That being said, we remain confident we will prevail on our appeal. 
  • Would NAR ever consider changing the cooperative compensation rule? This rule always has been in place to protect and serve the best interests of consumers, support market-driven pricing and advance business competition. NAR consistently reviews and considers evolving its rules in a way that responds to changes in the industry and what best serves consumers. 
  • Do you expect the plaintiffs to seek an injunction that would require NAR to stop making the rule mandatory or eliminate the rule altogether? We cannot predict what plaintiffs will do. We would contest any such effort because this rule always has been in place to protect and serve the best interests of consumers, support market-driven pricing and advance business competition.
    What’s the status with the Department of Justice and has anything changed with this verdict? We reached an agreement with the DOJ nearly two years ago. NAR has upheld our end of the agreement, and we expect the DOJ to do the same as affirmed by a federal court’s careful ruling. That is a separate matter from the case of Burnett v. NAR et al. 



Shared on https://www.nar.realtor/competition-in-real-estate on Oct 31, 2023


After an 11-day trial in the case of Burnett v. NAR et al, the eight-person jury in a Kansas City, Mo., federal courtroom came back Tuesday and found NAR and other corporate defendants liable in the case. 


NAR had presented in court that its rules prioritize consumers, support market-driven pricing and promote business competition. This matter is not close to being final as NAR will appeal the jury’s verdict. It will likely be several years before this case is finally resolved. 


NAR stands by the fact that its guidance for local MLS broker marketplaces ensures consumers get comprehensive, equitable, transparent and reliable home information and that brokerages of any size, service or pricing model get a fair shot at competing. NAR will continue to focus on our mission to advocate for homeownership and always put consumer interests first.



Shared on https://www.nar.realtor/competition-in-real-estate on Oct 30, 2023


On Monday, the final defense witness took the stand, which was followed by instructions by the judge to the jury and closing remarks by lawyers for the plaintiffs and all co-defendants. During NAR’s closing remarks, outside counsel Ethan Glass presented to the jury how there was no evidence to support the plaintiff’s allegations against NAR.


  1. NAR demonstrated there is no evidence or expert testimony to support allegations of antitrust violations claimed by plaintiffs. It makes no sense that hundreds of thousands of people got together to coordinate on a very public rule and public rule-making process involving hundreds of thousands of public documents. 
  2. NAR affirmatively proved purpose and effect of the cooperative compensation rule, which enables brokers to know how much they will be paid before starting work. NAR’s model rule has expressly stood for the proposition that buyer brokers, like everyone else, have the right to know how much they will be paid prior to commencing work. Commission rates are market-driven and have fluctuated over time. Agent compensation is set between brokers and their clients and has always been negotiable at any point in the transaction. And those costs are spelled out to buyers and sellers.
  3. NAR reaffirmed that a trade organization can lawfully create rules. NAR illustrated how trade associations are legal and serve important purposes, including for consumers. It is common practice for trade associations to meet or talk amongst the industry and adopt a rule or industry standard. And membership is voluntary.
  4. NAR showed that there is no harm to sellers. NAR doesn’t tell people what to charge or to receive a commission. NAR rules are very intentionally pro-consumer and pro-business competitive, and buyer brokers exist because consumer protection agencies thought they were important.


Jury deliberation begins Tuesday.



Shared on https://www.nar.realtor/competition-in-real-estate on Oct 27, 2023


On Friday, four more witnesses took the stand for the corporate defendants. The trial will continue Monday morning with one more witness expected, followed by closing statements, jury instructions and then jury deliberation, which could begin as soon as Monday afternoon. A verdict could then be delivered at any point and likely sometime next week.



Shared on https://www.nar.realtor/competition-in-real-estate on Oct 26, 2023


Thursday, four additional witnesses took the stand for the corporate defendants.


Video testimony of Scott Trupiano, a withdrawn plaintiff, detailed his experiences both purchasing and selling homes. Trupiano recounted how he was very satisfied with his real estate agent and worked with her as both a seller agent and buyer agent for three separate transactions. Trupiano agreed to the terms of the listing agreement each time and rated his agent a 9 out of 10 on each transaction, sharing how he valued the services she provided.


David Stevens, who previously served as Assistant Secretary of Housing and Federal Housing Commissioner for the U.S. Department of Housing and Urban Development (HUD) and oversaw FHA programs for Single and Multi-Family Housing, discussed why the current compensation model is not only helpful for both home sellers and buyers, but particularly first-time buyers:

  • Most first-time home buyers are cash constrained and requiring them to also pay for the buyer agent commission could force them to put down less for a down payment or forego professional services needed for one of the biggest purchases they’ll make in their lifetime.
  • Home sellers benefit from the offer of compensation because it ensures the seller will receive the most qualified buyers and the best offer.
  • Buyer brokers’ expertise is needed now more than ever because it is hard to buy a home.
  • The compensation the listing broker pays to the buyer broker is always negotiable.


Dr. Lawrence Wu, President of National Economic Research Associates, also testified that:

  • There is no evidence of conspiracy because offers of compensation are decisions independently made between a home seller and a listing broker, and always negotiable.
  • The offer of compensation benefits sellers by ensuring they get more buyers to see their house and more competitive bids, and benefits buyers by ensuring they have more choices and access to professional representation.
  • No one gets paid until a property sale closes, which fosters competition and creates a marketplace where brokers are further motivated to always serve their clients’ best interests.
  • Even if the cooperative compensation rule was not in place, evidence shows that the practice of cooperative compensation would still exist because it is good for sellers and buyers.


Keller Williams plans to present their witnesses on Friday, with closing arguments by all parties likely to begin on Monday, followed by jury deliberations.



Shared on https://www.nar.realtor/competition-in-real-estate on Oct 25, 2023


On Wednesday, four witnesses took the stand for the corporate defendants who will continue presenting their case through the week. Defense expert witnesses are anticipated to take the stand tomorrow and closing arguments could be as early as Monday. HomeServices of America, Inc. filed a motion for mistrial, which the court denied.



Shared on https://www.nar.realtor/competition-in-real-estate on Oct 24, 2023


Tuesday the defense continued their case as NAR CEO Bob Goldberg completed his testimony and NAR Director of Engagement Rodney Gansho took the stand. Gansho explained how Multiple Listing Services (MLSs) and associated rules work and noted:

  • Local MLS broker marketplaces promote transparency, equity, and efficiency for the benefit of consumers and enable real estate professionals to better serve their clients.
  • Local MLS broker marketplaces determine their rules locally and decide whether to adopt provisions of NAR’s MLS Handbook, including those identified as “mandatory.”
  • Should a local MLS choose not to adopt mandatory provisions, it would need to purchase its own error and omissions insurance.
  • Local MLSs are responsible for enforcement of the rules it adopts.
  • Nothing in NAR’s MLS handbook requires sellers to do anything.
  • “Blanket unilateral offers of compensation” means the listing broker makes a one-way, initial offer (unilateral) that is the same (blanket) for any MLS participant who brings a ready, willing buyer. That offer can then be negotiated – and often is – at any point in the transaction.
  • The listing broker has fiduciary duties to the seller and the buyer broker has fiduciary duties to the buyer, and no one makes any money unless there is a successfully transaction and the property sells.
  • Sellers determine which real estate professional to work with, and whether to even work with one.
  • At the outset of the transaction, sellers determine how much they will pay for a real estate professional’s services, which is then memorialized in the listing agreement between the seller and the real estate professional.
  • The NAR Code of Ethics requires REALTORS® to disclose to sellers any amount of compensation that will be offered to a buyer broker who brings a ready, willing buyer to successfully purchase the seller’s property.
  • The NAR Code of Ethics requires buyer brokers to inform buyers of all properties that meet their criteria, regardless of the offer of compensation being made to the buyer broker; and buyer brokers have options when they are not getting the cost of their services covered by the seller broker, including that the buyer can pay directly for the buyer broker’s services or the buyer can ask the seller to cover that cost.
  • The NAR cooperative compensation rule benefits sellers by exposing their home to every brokerage and real estate agent with ready, willing buyers to successfully purchase the buyer’s home. Buyers benefit because there is one centralized marketplace to go to, and they don’t have to pay out of pocket expenses, which means more buyers can afford a home and have more money to purchase a home, and sellers have a larger pool of buyers to purchase their home.



Shared on https://www.nar.realtor/competition-in-real-estate on Oct 23, 2023


Today, plaintiffs rested their case after presenting testimony from four more witnesses. In the afternoon, the defense began its case and presented NAR CEO Bob Goldberg. Goldberg shared the many functions and benefits of a trade association, and specifically how NAR works to protect, preserve, and advance homeownership, as well as to increase professionalism in the industry, and all for the benefit of consumers. NAR also presented Sharon Millett, NAR Past President and Chairperson of the 1991-92 NAR Presidential Advisory Group on Agency (PAG).


Millett explained:

  1. The PAG found that buyers needed and wanted a loyal advocate to represent them in the transaction, as the market shifted from subagency to buyer agency. 
  2. The PAG’s charge and goal was to accommodate and encourage different forms of representation, placing a consumer’s freedom of choice as central to the PAG’s work.
  3. The PAG didn’t focus on compensation, as the practice of offering cooperative compensation already existed in the marketplace.
  4. The PAG’s work allowed the marketplace to evolve and to provide consumers greater choice, with today’s norm giving buyers the ability to work with a loyal buyer agent who puts their needs above anyone else’s.
  5. Buyer brokers expend a significant amount of time and effort on behalf of their buyer clients and advise buyers on all aspects of the transaction, including helping buyers sort through the overwhelming amount of information available to consumers on the internet.
  6. Listing brokers would still offer compensation to buyer brokers even if the NAR cooperative compensation rule did not exist because:

       a. It is the best way to expose a seller’s property to the largest number of buyers.
       b. If the seller’s broker isn’t offering enough to cover a buyer broker’s fees, buyers may pass over a property because cash-strapped

           buyers can’t afford to cover the buyer broker’s fees on top of the significant amount of money it takes to purchase a home.
       c. Sellers get better pricing offers and allows sellers to sell their home faster, as two brokers work cooperatively to achieve a successful

          transaction for both the seller and the buyer’s benefit.



Shared on https://www.nar.realtor/competition-in-real-estate on Oct 23, 2023


On Friday, plaintiffs had three witnesses including one who talked about how commissions work abroad. Following are three perspectives about compensation and the consumer experience in other countries. 



Plaintiffs are expected to conclude their case on Monday when the defense is expected to begin presenting its case. 



Shared on https://www.nar.realtor/competition-in-real-estate on Oct 20, 2023


On Thursday, another seller member of the class and an economics professor testified as plaintiffs' witnesses. Some of the discussion centered on the compensation model in local MLS broker marketplaces. For context: 

  • Agent compensation is set between brokers and their clients and always has been negotiable at any point in the transaction. Those costs are spelled out to buyers and sellers, and NAR doesn’t tell people what to charge. The NAR Code of Ethics also requires members to advise clients about cooperation and amounts of compensation to be offered.
  • Despite what may be months or even years of work, agents only get paid when a home is sold, and according to Real Trends(link is external), commission rates have fluctuated over time and are well below where they were in the ‘90s.
  • The seller decides what fee they are willing to pay for their broker’s services and how much that listing broker should offer a broker who brings a buyer to close the transaction.
  • Because of this practice, sellers have access to the largest possible pool of buyers, and buyers get access to the greatest number of homes for sale in one place all in transparent and efficient virtual marketplaces.
  • Buyers also have the greatest chance to receive professional representation to guide them through the financial, legal and community complexities of buying a home in what is for many the single most complex and significant purchase they will make in their lifetime. 
  • The future of that buyer representation is at risk in this case. 


For more information: REALTOR® Magazine - Burnett Trial Preview



From Tracy Kasper, NAR President - Oct 19, 2023 1:03 PM 

 

As you know, opening arguments began Tuesday and the plaintiffs are well on their way to presenting their case in the Burnett trial. As we've talked about before, the next few days will continue to be particularly tough as the focus is more exclusively on the plaintiff's arguments. Things are still on schedule for the defendants to present the pro-consumer, pro-business competition side of this case, as we rightfully refer to it, beginning next week. 

 

With the media in full gear on coverage, we were disappointed to see a Wall Street Journal editorial that grossly mischaracterized what is at stake for consumers. I immediately wrote a letter to the editor (see also full text below) that the Wall Street Journal published that helped give the fuller story.  Fortunately, there have been many more positive stories, on balance, about REALTORS®, local MLS marketplaces and NAR over the last year and leading into the trial. And outlets such as Housing Wire and Yahoo Finance are taking an objective, balanced approach to their trial reporting. That said, it's an imperative that we continue to get our voice into stories, and we will.

 

We also want interested members to know what resources they have. A reminder you can direct them to "Burnett Trial Updates" at www.nar.realtor/competition-in-real-estate. In addition to timely updates, they will find the overarching NAR position and pre-trial REALTOR® Magazine there too. See also things like the newly added Consumer Testimonials at the site that provide anecdotes of real people who've had real experiences with REALTORS® and how local MLS broker marketplaces work. Traffic has been markedly up at the site and would encourage you, other members and interested parties to keep looking there for quick facts, infographics, fact sheets, videos and other content they can refer to or distribute. There is also realestatecommissionfacts.com, which is a good one-stop shop to direct consumers or others to for a better understanding about the basics of how compensation works. We've also been distributing social media content through state and local associations to reach members and the general public where they really are day to day.

 

All these tools and information are great, but I will say that there's nothing more authentic and true to who we are as REALTORS® and all we do than the one-on-one experiences, connections and conversations each of us with our clients and other people in the community. Each of those moments taken collectively are at the heart of our reputation and who we are. I appreciate all that each of you and all of our members do to represent REALTORS® each day. We know how much and how hard we're working for our clients every day, and I know that shows through.

 

Thank you all! Tracy


Realtors Respond on the Antitrust Case:

'The market-and hence the consumer-is in the driver's seat when it comes to real-estate commissions.'

Oct. 18, 2023

 

Your editorial "Realtors Face an Antitrust Reckoning" (Oct. 16) mischaracterizes what is at stake for consumers in Burnett v. National Association of Realtors. Don't fall for the hype by class-action attorneys about how local multiple-listing service (MLS) broker marketplaces work.


In response to the marketplace, and at the urging of consumer advocates, the National Association of Realtors has developed guidance for local MLS broker marketplaces. It is part of a very public rule-making process aimed at creating the most consumer-friendly market possible.

 

These virtual marketplaces are efficient, transparent and accurate because of cooperation among real-estate professionals. Listing brokers make offers of compensation to buyer brokers, who bring buyers to the table. Those offers can be of any amount, even zero, and the National Association of Realtors doesn't tell practitioners what to charge.

 

That compensation is set between the brokers and their clients and is always negotiable. According to Real Trends, commissions rates are well below where they were in the 1990s.

 

Realtors deliver a lot of value for the $50,000 they make annually, on average, as they guide consumers through all the legal, financial and community complexities of buying a home. Class-action attorneys would take away buyer representation, and black, Hispanic/Latino, first-time and low- and middle-income buyers would be hurt the most, according to a May 2022 study.

 

The National Association of Realtors looks out for consumers with its rules for local MLS broker marketplaces. In reality, the market-and hence the consumer-is in the driver's seat when it comes to real-estate commissions. That will all be evident as the National Association of Realtors makes its case in court.

 

Tracy Kasper 

President, National Association of Realtors



Shared on https://www.nar.realtor/competition-in-real-estate on Oct 19, 2023


NAR Position: In response to the marketplace, NAR has developed guidance for local MLS broker marketplaces that supports consumers getting comprehensive, equitable, transparent and reliable home information while brokerages of any size, service or pricing model get a fair shot at competing. The result is an efficient model for brokers to serve sellers and buyers and to enable market-driven pricing and buyer representation for consumers. REALTORS® adhere to a strict Code of Ethics and bring incredible expertise to guide consumers through the financial, legal and community complexities of buying or selling a home. 



Shared on https://www.nar.realtor/competition-in-real-estate on Oct 18, 2023


On Wednesday, three members of the class took the stand to testify as to their experience as home sellers, along with other Plaintiff’s witnesses. In addition, the plaintiffs’ attorneys presented recorded video deposition testimony from three NAR witnesses who discussed NAR MLS guidance, including The Clear Cooperation Policy.

  • The Clear Cooperation Policy (CCP) ensures brokers and agents serve the best interest of consumers and promote equal opportunity for all. The CCP advances equal access and opportunity in housing by ensuring listings are widely available and accessible to all consumers and requires MLS participants to submit their listings within one business day of marketing the property to the public. Without the protections from the CCP, consumers would be disadvantaged because agents could refuse to give agents or customers access to those listings.
  • The CCP is especially important in competitive markets where properties sell extremely fast, and to help inoculate against circumstances in which properties are publicly marketed to limited groups of people.
  • CCP was enacted in response to concerns about confusion in the marketplace about the availability of properties – often to the disadvantage of both home buyers and sellers. Brokers and local MLS broker marketplaces across the country asked NAR to consider a policy reinforcing the pro-consumer, pro-competitive benefits of listing a property in local MLS broker marketplaces.



Shared on https://www.nar.realtor/competition-in-real-estate on Oct 17, 2023


Tuesday plaintiffs, co-defendants and NAR outside counsel, Ethan Glass, presented opening remarks in the case of Burnett et al v. National Association of REALTORS® et al. Glass noted that: 

  • NAR rules are made as part of a very public rule-making process and are persistently and publicly shared and available.
  • The compensation rule ensures the buyer broker knows what they will be paid before they commence work and that buyers can afford representation.
  • Plaintiffs envision a world where there is no buyers’ agent and buyers would have to go it alone in what is the single most complex and significant purchase most people will make in their lifetime.
  • If buyers had to pay out of pocket for representation, that would reduce the number of buyers and the money buyers have to purchase homes from sellers.
  • NAR does not seek, track, receive or set commissions for buyers’ or sellers’ agents. Agent compensation is set between brokers and their clients and has always been negotiable at any point in the transaction, as set forth in NAR’s publicly available guidance for members. And those costs are spelled out to buyers and sellers.
  • Every plaintiff in this case knew the commission they were paying to their agent and agreed to it in writing.
  • Article 1 of the NAR Code of Ethics requires a REALTOR® to “protect and promote the interests of the client.” NAR also has rules that prohibit antitrust behavior. 



From Tracy Kasper, NAR President - Oct 16, 2023 8:51 AM 


The Burnett v. NAR et al trial is underway with jury selection happening today and opening remarks expected to begin Tuesday. I wanted to send this note as a reminder of the high-level updates NAR will be providing on the trial at the competition.realtor homepage under "Burnett Trial Updates" and our overall communications approach during the trial.

 

We've already published a pre-trial summary of what to expect at REALTOR® Magazine and at the conclusion of the trial, another article will summarize the outcome. These are good resources to explain to interested members what's going on in more depth. NAR is not otherwise planning more detailed day-to-day updates during the trial. As defendants in this case, we are inherently more vulnerable to negatively affect the arguments our lawyers are making in court by saying more publicly. It is a best practice that we don't litigate the details of what's happening in the trial outside the courtroom, and we need to abide by that here.

 

We know some media outlets are likely to report on the trial every day and may even be there live. We also know there are some who may present the information in a sensational way. NAR will, of course, share statements, provide context and correct gross misinformation with the media. But please be reminded and encourage everyone to not get caught up in those daily speculations and commentary. Plaintiffs will present their case first and for several days, so you should expect the coverage to be critical as it reports the plaintiffs' position. Defendants will present our case beginning next week. At the conclusion of trial, the jury will deliver a verdict at which point there will likely be years-long appeals before there is a final outcome. So, yes, there will be short-term news, but we all also need to stay grounded in what will necessarily be a longer-term view.

 

The NAR legal team and outside counselors have been preparing for this moment for a long time and are confident as they plan to present the absolute strongest pro-consumer, pro-business competition case at trial. I appreciate your support, patience and understanding as we navigate through this moment knowing NAR always has and always will be on the side of consumers and competition.

 

Thank you, Tracy

Louisiana Residents Encouraged to Use New LDI Tools to Prepare for Hurricane Season

By Louisiana REALTORS® • June 9, 2026
From the Louisiana Department of Insurance: During a press conference today with Governor Jeff Landry, Insurance Commissioner Tim Temple announced that registration for the next round of the Louisiana Fortify Homes Program (LFHP) will open at 8 a.m. on Monday, June 1, and will include 3,000 grants. The registration period for this lottery will be open for three weeks, closing at 5 p.m. on Friday, June 19.  During the press conference, Gov. Landry signed HB 1187 by Rep. Paul Sawyer, which will allow Louisiana Citizens Property Insurance Corporation to transfer $50 million in additional Katrina bond assessment funds to the LFHP. Combined with the $30 million in funding the program will receive through taxes and fees on insurance entities, the LFHP will receive a total of $80 million this year. “By lowering overall losses, we can reduce insurance and reinsurance costs, draw more insurers into the market, motivate existing companies to write additional policies and lower insurance premiums,” said Commissioner Temple. “That is exactly what the Louisiana Fortify Homes Program is designed to do.” The list of coastal parishes that are eligible to participate is expanding to include Acadia, Jefferson Davis and Lafayette parishes. Additionally, homeowners who live in the portions of Ascension, Calcasieu, Iberia, Livingston, St. Martin, St. Tammany, Tangipahoa and Vermilion parishes that were previously not included in the program will now be eligible to participate. A map showing the full list of eligible parishes is available on FortifyHomes.La.Gov . “Louisiana is the fastest growing state in the country for Fortified roofs, and that growth is not by accident—it is the result of strong support from Governor Landry and legislators like Chairman Talbot, Chairman Firment and Representative Sawyer, targeted program design, and a clear recognition that strengthening homes is one of the most effective ways to reduce insurance losses,” said Commissioner Temple. “At the end of the day, this program is about more than just roofs. It is about protecting families, it is about strengthening communities, and it is about putting Louisiana in a stronger position—both physically and economically—to face the challenges ahead.” To participate in the lottery, homeowners must register during the June registration period. Homeowners who registered for a previous round but were not selected must register again to participate. People who register on the last day of the registration period have the same chance of being selected as those who register on the first day, so there is no need to rush to register as soon as the period opens. When registering, homeowners will need to upload their homestead exemption, insurance policy declarations page that includes wind coverage, and flood insurance declarations page if the residence is in a flood zone. Homeowners who need assistance obtaining a copy of their homestead exemption should contact their parish tax assessor. Homeowners can contact their homeowners and flood insurance companies or agents for a copy of their policy declarations page. Homeowners are required to create a profile in the LFHP system before registering for the lottery and may do so by visiting the LFHP website and clicking the Login button. Homeowners who previously created a profile may use the same one for this and future rounds. Once the lottery registration period closes, the LFHP will randomly select 3,000 participants and send email notifications to registrants about whether they were selected to participate. These selection notices will be sent via email beginning on Monday, June 22. There are several program requirements that homeowners should be aware of before registering. Those interested in the program are encouraged to review eligibility information and frequently asked questions at FortifyHomes.La.Gov to determine whether their home meets the requirements for the program. If selected to participate in the grant program, homeowners will be financially responsible for having the home evaluated by a FORTIFIED-certified Evaluator as well as costs for the roof upgrade including permits, inspections and construction costs beyond the amount of the grant The LFHP provides grants of up to $10,000 for homeowners to upgrade their roofs to standards set by the Insurance Institute for Business & Home Safety. The program helps Louisiana homeowners strengthen their roofs to better withstand hurricane-force winds.
Educating prospective homebuyers on the true cost of owning a home

How to Talk to Clients About the True Costs of Homeownership in Louisiana

By Louisiana REALTORS® • June 9, 2026
Learn how real estate agents can educate buyers about Louisiana homeownership costs, including taxes, insurance, HOA fees, and maintenance.

2026 Legislative Session Scoop - Session Wrap-up

By Louisiana REALTORS® • June 5, 2026
The 2026 Regular Legislative Session has officially adjourned, and Louisiana REALTORS® closes the session with a strong record of legislative wins, defensive victories and meaningful progress on issues that directly impact property owners, homebuyers, housing providers and real estate professionals across Louisiana. This session touched nearly every major pressure point in the real estate market: insurance affordability, transaction transparency, appraisal certainty, leasing law, property taxes, blight redevelopment, litigation costs, consumer protection and private property rights. Louisiana REALTORS® successfully advanced several major policy priorities this session, including residential wholesaling reform, vacant residential land disclosure, appraisal certainty, security deposit reform, insurance mitigation funding and redevelopment tools for blighted property. At the same time, the association helped stop or reshape proposals that would have harmed housing supply, increased practitioners' liability, or created uncertainty for property owners and housing providers. Major Wins for You and Real Estate Residential Wholesaling Reform The signature victory of the session was HB 468 by Rep. Troy Hebert , Louisiana REALTORS®’ residential wholesaling reform bill. For years, residential wholesaling operated in a gray area of Louisiana law. HB 468 creates a clear statutory framework for residential wholesaling, strengthens consumer protection, increases transparency, and gives the Louisiana Real Estate Commission meaningful enforcement authority. The bill’s conference report passed unanimously in both chambers, with votes of 94-0 in the House and 35-0 in the Senate. This is a major structural reform for Louisiana real estate law. This bill will be state law effective August 1, 2026. Please note that the law does not affect any wholesale contracts between now and the effective date. Vacant Residential Land Disclosure HB 1166, by Rep. Kim Carver, passed the Legislature and has been sent to the Governor for his signature. The bill addresses disclosure gaps in vacant residential land transactions where buyers may discover late-stage issues involving access, utilities, drainage, flood risk, prior use or other material facts. HB 1166 creates a clearer process for buyers, sellers and real estate practitioners, and should help reduce failed transactions, disputes and closing-table surprises. As new industry forms and disclosures are developed, Louisiana REALTORS® will monitor the process closely and work to ensure the final requirements are practical, clear and consistent with sound industry practice. The Louisiana Real Estate Commission will complete the forms and disclosure process, with final implementation expected to be legally required for agents beginning January 1, 2027. Appraisal Liability Protections Louisiana REALTORS® secured two important appraisal-related wins. HB 1027 also by Rep. Troy Hebert , signed as Act No. 187 , clarifies that appraisers should not be held liable for compliance with obligations that belong to other parties in the transaction. HB 300 by Rep. Neil Riser , signed as Act No. 149 , addresses appraisal thresholds for bank-owned property. Together, these measures support greater transaction certainty and fairness in the appraisal process. The pair of these measures will take effect as law on August 1, 2026. Housing & Market Stability Security Deposit Reform HB 292, by Rep. Delisha Boyd and signed by Governor Landry as Act No. 63 , creates a more workable process for addressing damage discovered at the end of a lease and provides greater flexibility through written agreements regarding security deposit timelines. The measure offers practical clarity for housing providers, tenants and property managers when property damage is identified after move-out, allowing additional time to assess damage, obtain repair estimates and document costs before final security deposit accounting is completed. By creating a clearer statutory framework, the law helps reduce disputes and ensures that both landlords and tenants have a better understanding of their rights and responsibilities. Property managers can mark August 1, 2026, on their calendars, as that is the effective date for this legislation. Protections for Victims & Landlords HB 297, by Rep. Mandie Landry and signed by Governor Landry as Act No. 64 , expands Louisiana's early lease-termination protections to include victims of stalking and cyberstalking. The law recognizes that personal safety may require a tenant to leave a residence before the end of a lease term. To exercise these protections, a tenant must provide documentation from a qualified third party or other authorized evidence demonstrating that they are a victim of stalking or cyberstalking and that continued occupancy would present a safety concern. The measure also clarifies and expands who may serve as a qualified third party for purposes of supporting a tenant's request. These changes will take effect into law on August 1, 2026. Insurance Affordability and Mitigation Insurance affordability remained one of the most significant issues facing Louisiana homeowners and the real estate market. HB 1187 by Rep. Paul Sawyer , signed by Governor Landry as Act No. 416 , transfers an additional $50 million in Katrina bond assessment funds to the Louisiana Fortify Homes Program. Combined with other insurance-related funding, the program reaches approximately $80 million for the year. The Fortify Homes Program remains one of Louisiana’s most direct tools for reducing property risk, strengthening homes, improving market stability, and placing downward pressure on insurance costs over time. Several additional insurance measures did not reach final passage, including legislation on fortified roof endorsements, nonrenewal protections for homeowners who mitigate risk, and a pre-suit review process for residential property insurance disputes. These remain important long-term priorities. This became law and took effect upon the Governor’s signature. Blight, Redevelopment, and Property Taxes Louisiana REALTORS® supported policies this session aimed at returning neglected property to productive use and strengthening property-tax fairness. HB 214 by Rep. Chance Henry , now Act No. 272 with Governor Landry’s signature, will appear on the ballot as a constitutional amendment authorizing an optional property tax exemption for rehabilitated blighted or derelict property. HB 217, also by Rep. Chance Henry , is the enabling legislation for HB 214 and has received the Governor’s signature, becoming Act No. 422. Together, these measures would give local governments another tool to encourage private investment, neighborhood revitalization, and redevelopment. SB 180 , now Act No. 39 , will also appear on the ballot. The measure allows the surviving spouse of a deceased veteran with a service-connected disability to transfer an expanded property tax exemption. This is both a property-tax fairness measure and a homeownership stability measure for Louisiana veterans’ families. If passed in the fall election, the measures would take effect on January 1, 2027, as well as SB 180. Defensive Victories Some of the most important wins in this session came from stopping harmful legislation before it became law. Rent Stabilization Stopped Twice HB 472 by Rep. Alonzo Knox , the rent price control bill, was stopped after being involuntarily deferred. Louisiana REALTORS® opposed the bill and provided testimony in committee because rent-control policies can discourage investment, reduce housing supply, create uncertainty for housing providers and ultimately worsen affordability challenges. Knox brought the bill to the House Committee on Municipal, Local and Parochial Affairs twice due to the opposing testimony of our organization and opposition from the Home Builders Association and the Louisiana Apartment Association. Hidden Fees Bill Reshaped Yet Still Thwarted HB 617 by Rep. Mandie Landry , the hidden fees bill, raised concerns because it could have imposed liability on real estate professionals for fees they do not control, including those set by lenders, title companies, insurers, government entities and other third parties. Louisiana REALTORS® successfully negotiated a House-side amendment exempting real estate transactions from the bill’s scope. The bill later died in the Senate Commerce Committee. It is worth noting that the author agreed to include us in an amendment by Rep. Troy Hebert from the House floor, exempting real estate transactions. Automatic Renewal Bill Monitored HB 750, by Rep. Vincent Cox, addressing automatic renewal provisions, was closely monitored by Louisiana REALTORS® to ensure the legislation did not unintentionally apply to residential or commercial leases, property management agreements, association operations, nonprofit activities or standard real estate practices. Those concerns were successfully addressed through a Louisiana REALTORS® amendment offered by Senator Pressly during Senate consideration. When the bill returned to the House, Rep. Cox accepted the amendment and supported concurrence, preserving the bill's consumer protection goals while ensuring Louisiana's real estate industry, housing providers, associations and nonprofits were not subjected to unintended regulatory burdens . Missed Opportunities Two broader legal reform measures passed the House but stalled in the Senate Judiciary A Committee. HB 437, by Rep. Michael Melerine, addressing expert witness fees, and HB 1089, by Rep. Dennis Bamburg, establishing CARE Accounts, both reflected broader efforts to reduce litigation costs, improve Louisiana’s legal climate, and address cost drivers affecting insurance affordability and business competitiveness. Their failure to reach final passage was a missed opportunity, but the issues remain central to Louisiana’s long-term affordability conversation. Louisiana REALTORS® will continue to monitor these proposals and hope to see similar reforms return next session with a different outcome. What Comes Next The end of the session does not end the work. Louisiana REALTORS® will now turn to implementation, member education, ballot engagement and preparation for the next legislative cycle by directly engaging you, the driving force behind all of our efforts. The issues that shaped this session — housing affordability, insurance availability, redevelopment, legal costs, and private property rights — are not going away. Neither are we. Louisiana REALTORS® remain committed to serving as a consistent, credible and effective voice for property owners, homebuyers, housing providers and real estate professionals across Louisiana. Thank You As the Legislature adjourns, Louisiana REALTORS® expresses sincere appreciation to the leadership, members, public officials and advocacy partners who helped make this a productive and successful session for the real estate industry and property owners across Louisiana. We are especially grateful to Louisiana REALTORS® President Ginger Maulden, President-Elect David Favret, Treasurer Misty Ingersoll, Legislative Committee Director Keary Coffin, Outside General Counsel Eric Landry, LARPAC Chairwoman Marsha McGraw-Barbera, the Louisiana Real Estate Commission Commissioners and Executive Team, and the members of the Louisiana REALTORS® Legislative Committee for their leadership, guidance, resources and engagement throughout the session. We also extend a special thank you to those who attended this session’s REALTOR® Day and helped strengthen our presence at the Capitol. Your participation amplified our ability to advocate with one united voice when it mattered most. We further extend our appreciation to the legislators and partners who worked alongside us this session, including Rep. Troy Hebert, Rep. Kim Carver, House Commerce Chairman Daryl Deshotel, Rep. Delisha Boyd, Rep. Stephanie Hilferty, Rep. John Wyble, Sen. Beth Mizell, Sen. Greg Miller, Speaker Phillip DeVillier, Senate President Cameron Henry and Governor Jeff Landry for their leadership, accessibility and commitment to addressing issues impacting housing, property rights, insurance affordability, redevelopment and Louisiana’s economic future. Strong policy outcomes are only possible through collaboration, professionalism and sustained engagement. Louisiana REALTORS® remains grateful for the relationships and partnerships that helped move meaningful legislation across the finish line this year. Please view the session wrap-up tracking report provided by our lobbying team over at Harris, DeVille and Associates.
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