Discussion: View Thread

This week, a Federal jury found the National Association of Realtors responsible for controlling commission rates.

Regardless of market conditions and more buyers without brokers, rates have stayed at 5%-6%.

US jury finds realtors liable for inflating commissions, awards $1.78 bln damages | Reuters

Will this decision have an impact on rate structures in the AEC industry?

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Chad Morrison P.E., F.ASCE
Professional Engineer
Greenville RI
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I've always wondered how and why real estate agents can get 5-6% of the sale price of a home every time the building is sold while carrying little to no liability, while the engineers who designed the property get only a fraction of that amount for their fees and yet they are liable for the performance of that building for the longest time! I believe structural engineers are responsible for the safety of more lives at any one time than physicians, so why can't structural engineers (and other engineers) adopt a subscription payment system on the buildings/structures they design if they are going to continue carrying the liability on those buildings? 

This week, a Federal jury found the National Association of Realtors responsible for controlling commission rates.

Regardless of market conditions and more buyers without brokers, rates have stayed at 5%-6%.

US jury finds realtors liable for inflating commissions, awards $1.78 bln damages | Reuters

Will this decision have an impact on rate structures in the AEC industry?

------------------------------
Chad Morrison P.E., F.ASCE
Professional Engineer
Greenville RI
------------------------------

I've always wondered how and why real estate agents can get 5-6% of the sale price of a home every time the building is sold while carrying little to no liability, while the engineers who designed the property get only a fraction of that amount for their fees and yet they are liable for the performance of that building for the longest time! I believe structural engineers are responsible for the safety of more lives at any one time than physicians, so why can't structural engineers (and other engineers) adopt a subscription payment system on the buildings/structures they design if they are going to continue carrying the liability on those buildings? 

This week, a Federal jury found the National Association of Realtors responsible for controlling commission rates.

Regardless of market conditions and more buyers without brokers, rates have stayed at 5%-6%.

US jury finds realtors liable for inflating commissions, awards $1.78 bln damages | Reuters

Will this decision have an impact on rate structures in the AEC industry?

------------------------------
Chad Morrison P.E., F.ASCE
Professional Engineer
Greenville RI
------------------------------

I have always wondered the same. As an owner of a civil and surveying firm, our risk was high and liability essentially forever.  The land owner, developer, contractor, local approving agencies, realtors don't have that liability, and yet a realtor can make a lot of $ on one sale, not to mention resales like you said.  😡

I've always wondered how and why real estate agents can get 5-6% of the sale price of a home every time the building is sold while carrying little to no liability, while the engineers who designed the property get only a fraction of that amount for their fees and yet they are liable for the performance of that building for the longest time! I believe structural engineers are responsible for the safety of more lives at any one time than physicians, so why can't structural engineers (and other engineers) adopt a subscription payment system on the buildings/structures they design if they are going to continue carrying the liability on those buildings? 

This week, a Federal jury found the National Association of Realtors responsible for controlling commission rates.

Regardless of market conditions and more buyers without brokers, rates have stayed at 5%-6%.

US jury finds realtors liable for inflating commissions, awards $1.78 bln damages | Reuters

Will this decision have an impact on rate structures in the AEC industry?

------------------------------
Chad Morrison P.E., F.ASCE
Professional Engineer
Greenville RI
------------------------------

I've always wondered how and why real estate agents can get 5-6% of the sale price of a home every time the building is sold while carrying little to no liability, while the engineers who designed the property get only a fraction of that amount for their fees and yet they are liable for the performance of that building for the longest time! I believe structural engineers are responsible for the safety of more lives at any one time than physicians, so why can't structural engineers (and other engineers) adopt a subscription payment system on the buildings/structures they design if they are going to continue carrying the liability on those buildings? 

This week, a Federal jury found the National Association of Realtors responsible for controlling commission rates.

Regardless of market conditions and more buyers without brokers, rates have stayed at 5%-6%.

US jury finds realtors liable for inflating commissions, awards $1.78 bln damages | Reuters

Will this decision have an impact on rate structures in the AEC industry?

------------------------------
Chad Morrison P.E., F.ASCE
Professional Engineer
Greenville RI
------------------------------

Hi Abi!

Q1. "I've always wondered how and why real estate agents can get 5-6% of the sale price of a home every time the building is sold while carrying little to no liability, while the engineers who designed the property. . . "

A1. What, how, and why is because its the law!

Q2. What is ASCE and our companion engineering societies doing to change those law?

Cheers,

Bill

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William M. Hayden Jr., Ph.D., P.E., CMQ/OE, F.ASCE
Buffalo, N.Y.

"It is never too late to be what you might have been." -- George Eliot 1819 - 1880

Original Message:
Sent: 11-06-2023 09:26 AM
From: Abieyuwa (Abi) Aghayere
Subject: Jury Decision on Realtors - What does this mean for AEC industry?

I've always wondered how and why real estate agents can get 5-6% of the sale price of a home every time the building is sold while carrying little to no liability, while the engineers who designed the property get only a fraction of that amount for their fees and yet they are liable for the performance of that building for the longest time! I believe structural engineers are responsible for the safety of more lives at any one time than physicians, so why can't structural engineers (and other engineers) adopt a subscription payment system on the buildings/structures they design if they are going to continue carrying the liability on those buildings? 

This week, a Federal jury found the National Association of Realtors responsible for controlling commission rates.

Regardless of market conditions and more buyers without brokers, rates have stayed at 5%-6%.

US jury finds realtors liable for inflating commissions, awards $1.78 bln damages | Reuters

Will this decision have an impact on rate structures in the AEC industry?

------------------------------
Chad Morrison P.E., F.ASCE
Professional Engineer
Greenville RI
------------------------------

Your response highlights the perversity of the situation and what the public is willing to pay for services. As to the original question, I don't think the Missouri ruling will impact civil engineering other than this chat space.

Hi Abi!

Q1. "I've always wondered how and why real estate agents can get 5-6% of the sale price of a home every time the building is sold while carrying little to no liability, while the engineers who designed the property. . . "

A1. What, how, and why is because its the law!

Q2. What is ASCE and our companion engineering societies doing to change those law?

Cheers,

Bill

------------------------------
William M. Hayden Jr., Ph.D., P.E., CMQ/OE, F.ASCE
Buffalo, N.Y.

"It is never too late to be what you might have been." -- George Eliot 1819 - 1880

Original Message:
Sent: 11-06-2023 09:26 AM
From: Abieyuwa (Abi) Aghayere
Subject: Jury Decision on Realtors - What does this mean for AEC industry?

I've always wondered how and why real estate agents can get 5-6% of the sale price of a home every time the building is sold while carrying little to no liability, while the engineers who designed the property get only a fraction of that amount for their fees and yet they are liable for the performance of that building for the longest time! I believe structural engineers are responsible for the safety of more lives at any one time than physicians, so why can't structural engineers (and other engineers) adopt a subscription payment system on the buildings/structures they design if they are going to continue carrying the liability on those buildings? 

This week, a Federal jury found the National Association of Realtors responsible for controlling commission rates.

Regardless of market conditions and more buyers without brokers, rates have stayed at 5%-6%.

US jury finds realtors liable for inflating commissions, awards $1.78 bln damages | Reuters

Will this decision have an impact on rate structures in the AEC industry?

------------------------------
Chad Morrison P.E., F.ASCE
Professional Engineer
Greenville RI
------------------------------

This week, a Federal jury found the National Association of Realtors responsible for controlling commission rates.

Regardless of market conditions and more buyers without brokers, rates have stayed at 5%-6%.

US jury finds realtors liable for inflating commissions, awards $1.78 bln damages | Reuters

Will this decision have an impact on rate structures in the AEC industry?

------------------------------
Chad Morrison P.E., F.ASCE
Professional Engineer
Greenville RI
------------------------------