Understanding The New Real Estate Rules — And How They Affect You 

The real estate industry in the U.S. has weathered many permanent changes since it first began. These changes typically have translated to greater protections and transparency for buyers and sellers, and has kept the industry innovating and moving forward. 

There are more major changes proposed for the national real estate market this summer, and they could end up affecting everyone. These likely changes are the outcome of a pending settlement in a national class action lawsuit, brought against the National Association of Realtors (NAR) organization by the plaintiffs, a group of home sellers from the Midwest who listed their homes for sale on the MLS (Multiple Listing Service) using real estate Brokers. 

In order to try to better understand what’s happening, let’s first break everything down to the basics. 

What Is A Real Estate Brokerage? 

In order to legally practice real estate in Florida, a real estate agent must have an “active” license, working under a Broker or be the Broker (an experienced agent who’s gone through additional licensing requirements and runs a brokerage) themselves. The Broker and his or her agents all work under the brokerage (real estate company). Among the many well-known national brokerages are RE/MAX, Keller Williams and HomeServices of America, all of which were named in the suits. 

Exceptions for those who are able to engage in real estate transactions but who are not under a brokerage are the following — real estate attorneys, agents who are employed by home builders in community sales offices, agents in leasing offices and buyers or sellers who represent themselves in their own real estate transactions. 

What Is The NAR? 

As real estate records began being tracked in the U.S. around the end of the 1800s, there was inconsistency and dubious practices among some in the profession. To curb the problems, 19 various city real estate boards and the California State Realty Federation organized and created the National Association of Real Estate Exchanges in 1908. That name was later changed to the National Association of Realtors (NAR). 

In 1913, the Association adopted its ‘Code of Ethics’ with the “Golden Rule” as its guiding principle. Shortly after, in 1916, the term “REALTOR” was created for those who were members of the National Association and who went through extended training to learn and pledge to uphold its strict code of ethics. 

Now, NAR is the largest trade organization in the U.S., with nearly 1.5 million members. 

What Is The MLS? 

NAR also controls and regulates most of the 800 local and regional Multiple Listing Services (MLS) throughout the country. These MLSs serve as the primary databases where information (including photos) about current local real estate for sale or rent is uploaded, listed and then shared with potential buyers. Popular websites like Zillow.com and Homes.com (photo above) pull most of their information from MLS. 

From very early on, in order to list on an MLS, NAR required a written listing agreement, which meant that the seller would specify who (which Broker or agent) could list his or her property and the specific commissions that would be paid, and to whom, in order to avoid later disputes and build trust among those in the early profession. 

This early requirement stuck. The commissions are currently either specified in the listing agreement as a percentage of the total sale price, or as a flat dollar amount. 

What Happened With The Case? 

Previously, NAR’s “Participation Rule” required that for a property to be listed on MLS at all, some compensation (even as little as $1) must be offered to the buyer’s agent. The plaintiffs in the case claimed that some of the nation’s largest real estate brokerage firms used this rule to collude with NAR to fix prices and artificially raise the amount of home sale commissions, even though commissions had always been negotiable. 

The jury sided with the plaintiffs at the end of last October (2023), and awarded them approximately $1.8 billion in damages. After the ruling, NAR immediately changed its Participation Rule so that seller listings could offer as little as $0 commission to a buyer’s agent, and in November, Stellar MLS (the local MLS that covers the entire Tampa Bay area) updated its rules and regulations so the local system could accept $0 in that commission input field. 

When Was The Settlement Reached? 

On March 15, 2024, a smaller settlement in the amount of $418 million was reached between the parties. According to Katie Johnson, the chief legal officer of NAR, “This settlement would resolve the claims brought against NAR.” This settlement is the document all parties agreed to, but this isn’t the end. Johnson stated that, “Like all settlements of class action litigation, it is subject to court approval.” 

What this means is that the proposed settlement terms and changes to real estate policies might not take effect until July of this year, at the earliest. 

The settlement also came with a cap, meaning only large brokerages with residential transaction volumes of $2 billion or more in 2022 were liable to pay into the settlement fund, and ones with volumes below $2 billion were released from liability. The brokerage HomeServices of America, however, chose to not participate in the settlement, and has now become the lone defendant, wanting to fight it out and take its chances, potentially pushing the case to the U.S. Supreme Court. 

What Are The Proposed Changes? 

There are two primary changes that will affect the entire real estate landscape: 

From the Stellar MLS public website: 

1. “Compensation offers moved off the MLS: NAR has agreed to put in place a new rule prohibiting offers of compensation (to be listed) on the MLS.” As was mentioned before, NAR had already changed its policy to allow for offers of $0 compensation to the buyer’s agent on the MLS, but currently, most sellers are still opting to include some type of commission in that field. But, this change would strictly prohibit ANY commission being offered in the MLS listing at all. 

The intent was to level the playing field to make sure there was no steering, so buyers’ agents would show them every potential house, regardless of the commission, because they wouldn’t know what it might be up front, as they historically have been able to know. 

This doesn’t prohibit the agents from negotiating concessions behind the scenes, but the hope and goal of the settlement was that increasing negotiations at this step, and at the initial written representation agreements (see below), would overall reduce total commissions paid nationwide, saving consumers money. 

Also from Stellar MLS public website: 

2. “Written agreements for MLS participants acting for buyers: MLS participants [agents/Brokers] working with buyers will be required to enter into written representation agreements with their buyers.” 

These written and signed agreements are typically known as Buyer Agency Agreements and specifically might be referred to as Exclusive Buyer Broker Agreements (EBBA), which are already required in more than a dozen states, but are optional in the rest. These are meant to ensure that home buyers know in advance what their agent will charge for their services, if the seller doesn’t offer concessions to compensate them. 

Also, the seller may still offer concessions, but instead of a commission being paid directly to the buyer’s broker from the seller (like it had been traditionally done in the past), a concession might go to the buyer, and then the buyer would pay their agent the rate listed in the agreement. So, if the seller were offering 2% concessions, but the agreement between the buyer and their agent was 3%, then the buyer may have to come up with the remaining 1% themselves. 

This, of course, could cause the buyer to reconsider that particular property or take concessions more into consideration, now that they might have to participate in paying for their real estate agent’s services. 

What Are The Concerns? 

This settlement has caused concern for certain categories of home buyers who may be at a disadvantage, given current restrictions and budgets. For example, a first-time home buyer with less buying power might be more swayed by certain properties based solely on the concessions they are offering in order to pay their agent, and sellers may not even entertain the buyer’s offers if they ask for too much in concessions. 

Other buyers who might be affected more than others are those who may use Veterans Administration (VA) loans, which are reserved for U.S. Armed Forces active duty service members, veterans, reservists, or their surviving spouses (under certain circumstances) that meet the minimum active-duty service requirements set forth by the U.S. Department of Veteran Affairs. Many buyers who qualify might choose to use a VA loan over other types of loans because the terms are typically much better. 

However for VA loans, current restrictions on certain fees would not be compatible with the proposed national change. On March 27, NAR president Kevin Sears wrote a letter to the VA and shared his concern about this, stating, “In this exceedingly competitive market, we are concerned that the VA’s current policies place veterans at a significant disadvantage compared to traditional buyers. Under VA policies, buyers using their home loan benefit are prohibited from compensating their professional representative directly. In situations where no offer of compensation is offered from a seller, VA buyers are immediately at a disadvantage, potentially forcing them to forego professional representation, lose a property in an already limited inventory, choose a different loan product, or exit the market entirely.” 

No one knows exactly what this all will look like moving forward, or what things will have to change in order to make it all work, but there is a timid yet optimistic outlook from real estate professionals that things will work out for the best, as they have many times in the past. 

Will Rezoning Provide Viera’s Safety Cut-Through In K-Bar? 

 If you travel east on K-Bar Ranch Pkwy. (past Sundrift Dr.; see map above), a little south of the Hillsborough/Pasco county line, you’ll come to a spot where the K-Bar Ranch Pkwy. abruptly ends at five perfectly placed bright red diamond signs. 

To the left are gorgeous houses being constructed by M/I Homes around a freshly paved cul-de-sac, and to the right, a beautiful set of lakes where sandhill cranes are teaching their young how to forage for food along the banks. 

As the sun lowers in the sky, walkers, runners and bicyclists begin to emerge and take advantage of this 800’ long section of road to nowhere, taking in the fading warmth of the sun. Straight ahead, past the signs, is a narrow stretch of cypress trees hiding Basset Branch, a tributary that flows south directly into the Hillsborough River. Many don’t even know the creek is there. 

On the east side of this 300’-wide wetland lies Easton Park, a small subdivision which began building in 2005, but where the last house wasn’t built until 2014, due to the Great Recession of 2008-09. Since then, Easton Park has been the only K-Bar subdivision with access to Morris Bridge Rd., but a big change may be coming — thanks to a new developer planning to add new homes and townhomes in K-Bar Ranch. 

In the distance behind the sandhill cranes, is where K-Bar Ranch Pkwy. currently dead-ends a just east of Sundrift Dr. (see map above). (Photos by Joel Provenzano)

Inside Easton Park are two strange intersection footprints, one along Pictorial Park Dr. and one along Natures Spirit Dr, which like the road in K-Bar, seem to go nowhere. But, there is a purpose to all of this seemingly wasted pavement. Although they are far apart, the end of K-Bar Ranch Pkwy. and these two random intersection footprints are all in line with each other. 

Years before the K-Bar Ranch was annexed into the city and Easton Park was ever even started, Hillsborough County planners knew that they wanted a future east-west road to someday connect to Morris Bridge Rd. all of the communities that would be built upon this sprawling pasture land. Early on, they planned its path and set aside the land for future right-of-way. Back then, there was a dirt path that crossed over then-tiny Basset Branch allowing ranchers to get from one side of the property to the other, and there were no wetland trees around that crossing. 

The county decided the future east-west road path should go there, to minimize environmental impacts, but when the eastern half of that land was sold to make Easton Park, for whatever reason, that dirt path and old culvert pipes underneath were removed. After a few flooding rains, it didn’t take long for now-much-wider Basset Branch to carve its way through and start to expand. 

The New Project 

Now, more than 20 years later, this former dirt-covered crossing has grown into the 300’- wide wetland where K-Bar Ranch Pkwy. will need to punch through in order to connect to Easton Park, and ultimately extend to Morris Bridge Rd. But, this former county vision is no longer a pipe dream, as the Eisenhower Property Group (EPG) submitted a preliminary plat to the City of Tampa on March 1 of this year for a project which is currently being referred to as “K-Bar Ranch Homestead Parcel Phase 1.” This area was annexed into the City of Tampa in 2002 in anticipation of its development. 

The city issued comments for this proposed community (to be located on the east side of the wetland, immediately north of Easton Park) and referenced that rezoning will need to be completed and accepted before the project could move forward as proposed. Even so, there may still need to be some changes to the plans to satisfy all city departments. 

The rezonings — REZ-24-02 and REZ- 24-03 — still need to go before the Tampa City Council, so District 7 Tampa City Council member (and New Tampa resident) Luis Viera could not, by law, comment about the rezonings for this article, and city staff says that neither rezoning has been scheduled yet, but that EPG is targeting June or July for both. 

The main change proposed in both rezonings, from the previously approved zoning, is a change in orientation of the main north-south “Collector Road,” which was previously approved as a loop road. Instead of a loop, it would be straightened (as shown in the map above). Also proposed is a minor change in the number of dwelling units to a maximum total of 500 single-family and 188 townhomes. 

The project plans currently consist of 484 single-family home sites (363 sites of 50’x120’ and 121 60’x120’ lots) on an approximately 400-acre site. This is slightly below the maximum 500 single-family homes being requested in the rezoning. Where the proposed K-Bar Ranch extension intersects with Morris Bridge Rd., both of those corners are labeled as “Future Commercial” in the plans (see map). 

Coincidently, EPG also is developing the master-planned community on the other side of Morris Bridge Rd. from Easton Park, known as Two Rivers (which we told you about in a previous issue). For that project, EPG acquired the first 6,000 acres inside Pasco back in 2021 and the remaining 2,000 acres inside Hillsborough about a year ago. 

The Important Part 

The most important part of this latest EPG K-Bar project (for many local residents) may not be so much the homes, but the roadways shown in the proposed plans. The existing portion of K-Bar Ranch Pkwy. that dead-ends at Sundrift Dr. is labeled “Segment F,” and the new extension that will connect it out to Morris Bridge Rd. is labeled “Segment G, Transportation Improvement,” which is a proposed 120’ -wide right of way (R/W) “Collector Road – 4 Lane Divided.” 

The sign marking the intersection of K-Bar Ranch Pkw. and Sundrift Dr.

The K-Bar Ranch plans state that, “Transportation Improvement G [K-Bar Ranch Parkway Extension] shall be constructed prior to or concurrent with Homestead Parcel Phase 1 [the main project].” This extension will connect with each of those two strange intersection footprints in Easton Park, allowing those residents three potential additional ways to get in and out of their community: 

1. Westbound toward Kinnan St. via K-Bar Ranch Pkwy. 

2. Eastbound toward Morris Bridge Rd. via K-Bar Ranch Pkwy. 

3. Northbound towards Pasco County, where the proposed north-south “Collector Road” through the new community is slated to connect with Wyndfields Blvd. in the Union Park community in Wesley Chapel. 

This also will inversely allow K-Bar Ranch, Union Park and Meadow Pointe residents easier access to Morris Bridge Rd., giving more route choices for local residents and greatly reducing distances to get around the area. These additional connections could improve safety, too (see below). City staff says that EPG is responsible for constructing both the K-Bar Ranch Pkwy. extension and the north-south “Collector Road,” as both are required under the developer’s 2018 agreement with the city. 

Safety First? 

Councilman Viera said he had first learned about this proposed community project from city staff when he was looking into the issues and potential solutions surrounding too-long emergency response times in K-Bar Ranch, New Tampa’s northeasternmost and most remote community. 

“I have been pushing for a fire station in K-Bar but was told there was not enough calls for service in that area,” Viera says. 

He expressed concern about the 12-minute travel time for emergency vehicles from Tampa Fire Rescue Station No. 22 on Cross Creek Blvd. to reach the back of K-Bar Ranch. With the proposed extension of K-Bar Ranch Pkwy. out to Morris Bridge Rd., those travel times could be cut in half — to only six minutes — potentially saving lives. 

Viera says he feels very strongly about connecting roads and communities together. On the other side of K-Bar, he pushed hard to try and fully connect Kinnan St. with Mansfield Blvd. in Meadow Pointe for regular traffic but said, “Pasco has not been amenable to that, there’s been a block from the Pasco side…but I was happy we at least got the emergency gate,” which was installed in 2020. He says his intent is to still get that connection fully open to regular vehicular traffic someday. 

K-Bar Ranch was finally connected to Wesley Chapel when Meadow Pointe Blvd. was extended south to meet K-Bar Ranch Pkwy, something Pasco did agree to, making Viera happier. The thing that isn’t certain now, however, is who exactly is going to physically connect the north-south “Collector Road” in this new K-Bar community project with Wyndfields Blvd. in Union Park. Wyndfields Blvd. currently ends 540’ north of the county line The currently submitted plans do not call out exactly how that will be accomplished or who will be responsible for it, although city staff believes that ultimately, that responsibility will fall to EPG under the development agreement.

Welcome To Moe’s…Again…Wesley Chapel!

“Welcome to Moe’s!” was the familiar and unmistakable sound that filled the bright and airy new restaurant located at 5486 Post Oak Blvd. — the first business to open in the new retail strip center between The WingHouse and The Learning Experience, near the entrance to the Lexington Oaks community off Wesley Chapel Blvd. The second Moe’s Southwest Grill to open in Wesley Chapel (the other is in The Shops at Wiregrass) was a happening place during its Grand Opening on Apr. 19. 

The lure was too good for some to pass up. To celebrate, the new Moe’s gave tickets for “Burritos On Us for a Year” to the first 50 people in line for the planned 10:30 a.m. opening. The tickets are good for one burrito (or bowl) per week for a year. 

But, since there were already 75-100 people on line outside the new Moe’s long before 10:30, one of the restaurant’s partners, Jason Catalanotto, began handing out the 50 tickets at 9 a.m. “Many of them camped out overnight,” Catalanotto said. 

José Garcia (photo, above), who received ticket #50, works in local construction and had just recently moved to Wesley Chapel. Garcia said his girlfriend is the one who told him about the burrito giveaway. When asked what time he had to get there (to be the last ticket recipient), he explained, “I got here a few minutes before 8 a.m.” 

Those who arrived after 8 didn’t go away empty-handed. Next to the ordering counter, the new Moe’s had a colorful prize wheel set up where you could spin to win “merch” like squishy avocado shaped stress relievers, free kids meals, can koozies, or most creatively…T-shirts rolled up in foil like burritos! 

Catalanotto said that he and his partners Chirag (photo, right) and Aman Patel began working on the vision for this Moe’s location nearly two years ago and Moe’s is now the first business to open in this new plaza. The four adjacent suites are not yet occupied, but the suite directly behind Moe’s in the plaza is busy with interior construction. Aman Patel told the Neighborhood News that Little Caesar’s Pizza will occupy the space next to Moe’s and the space on the other side of Little Caesar’s will be “either a Jimmy John’s Sandwich Shop or Jersey Mike’s Subs,” with a dentist’s office planning to open in the plaza’s other end cap. 

Laceleaf Med Spa 

The day Moe’s opened, owner Lisa Rezvan (photo, left) of Laceleaf Med Spa, which will be located directly behind Moe’s in the plaza, was busy going over construction plans and coordinating her build-out. 

Rezvan, who lives in New Port Richey, wanted to have a location in Wesley Chapel but still wanted to live close to the water. 

“I really like Wesley Chapel, you can feel the positive energy in the people here,” she said. She also said she plans to open Laceleaf in June, and that her focus is on luxury, level of care and most important to her, “long-term results,” not just something that is a temporary solution. She said the thing that sets her apart mostly will be the Radio Frequency (RF) Microneedling and other unique services she says you won’t find anywhere else in Wesley Chapel. 

Bay Paws Pet Resort Begins Construction In Wiregrass 

You can see the existing 7-Eleven and Enterprise Rent-A-Car buildings at the far left of this picture. 

Construction materials have recently started appearing on the empty piece of land immediately behind the iconic ‘Bull’ statue at the entrance to Wiregrass Ranch High. These concrete blocks, pieces of steel, pipes and other materials will soon be assembled into a new Bay Paws Pet Resort location, designed to take care of your furry loved ones. 

(Above and Below) Two maps showing where Bay Paws Pet Resort will open. 

Located south of S.R. 56, on Mansfield Blvd. (where it meets up with Hueland Pond Blvd. and the Wiregrass School Rd.), just south of the 7-Eleven convenience store and Enterprise Rent-A-Car, the new pet resort will be very convenient, given its direct proximity to the thousands of existing homes in The Ridge at Wiregrass and numerous nearby Meadow Pointe neighborhoods. 

The Bay Paws facility will be large, offering 15,000 sq. ft. of interior space and an additional 17,375 of a fenced-in, “outdoor turf group play area.” The company’s website states, “All boarding suites and daycare play areas are equipped with cameras accessible through our client portal.” 

Bay Paws is no stranger to the Tampa Bay area, with two established locations, — one in Clearwater and the other in Ybor City — both of which are averaging 4.7 out of 5 stars, on more than a thousand Google reviews. 

A fourth Bay Paws location, where the building is now finished, will be opening soon in Trinity, between S.R. 54 and Trinity Blvd., which will be a “luxury pet resort offering boarding, daycare and grooming services,” according to its Google landing page. 

The southeast corner of Mansfield and Heuland Pond Blvds. (see map) has seen quite a bit of commercial growth recently, first with the 7-Eleven, followed by the recent completion of the commercial strip plaza anchored by Enterprise, and the start of the Pet Resort, as well as a future Ziggi’s Coffee shop (with a drive-through) on the parcel next to Enterprise (construction has not yet begun). 

Ziggi’s, which was founded in Colorado in 2004, today has 85+ locations open and more than 250 in development across the U.S. 

Business Briefs — PAM Health Rehabilitation Hospital Coming To Wiregrass 

The site plan for the PAM Health Rehabilitation Hospital in Wiregrass Ranch. (All of these graphics were submitted to Pasco County)

Back in December, Wiregrass Ranch submitted plans for an a new east/west access road through parcel M3 (see map, bottom right), which was intended to help provide access to a proposed new PAM Health Rehabilitation Hospital and future outparcels. This road will connect with Bruce B Downs (BBD) Blvd., at the directional median opening that aligns with Stockton Dr. on the other side of BBD. 

The location map for the PAM Rehab Hospital.

In the future ultimate build-out, it’s intended that this road might be punched through the wetland and connected directly as an extension to the existing Bella Corsa Blvd in Estancia at Wiregrass. This extension will serve two functions — 

1) to give residents direct vehicular and pedestrian access to the large commercial developments and reduce traffic on the main roads, and 2) to give residents an alternative way to access BBD. 

The plans for the Parcel M3 access road and future commercial.

The proposed PAM Health Rehab Hospital will be located immediately north of the Amberlin Apartments site (on the other side of the natural wetland pond) and, even though the plans don’t currently show it, it will be required to be cross connected to Amberlin and the small commercial retail outparcel to the south (M3 Outparcel B site) with a small road, which will allow this rehab hospital (and all of the future Wiregrass commercial) to have access to the signal at Eagleston Blvd. upon ultimate buildout. 

Plans for the small retail outparcel to the south show this future cross connection which also would include sidewalk access. This retail development (Outparcel B) will be a small multi-tenant plaza whose future tenants are currently unknown but could be a mix of retail and a small restaurant. 

In addition, construction plans for the Ace Medical Plaza (M3 Outparcel C) were just submitted to the county in February. This site is located immediately in front of Amberlin and will be a two-story, 15,000 sq.-ft. building occupying Outparcel C of the Wiregrass development, at the southeast corner of BBD and Eagleston Blvd.