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Jan. 4, 2024
Major Lawsuit Against National Association of Realtors Progresses as Class Action
In a significant legal development, a lawsuit involving the National Association of Realtors (NAR) and leading U.S. real estate brokerages has been granted class action status. This case, which implicates industry giants like RE/MAX, Anywhere, and Keller Williams, centers on accusations of commission inflation that have impacted homesellers across various states.
The lawsuit alleges that the NAR and these brokerages conspire to maintain high commission rates unfairly, affecting transactions from March 2015 to December 2020. Home sellers from states such as Texas, Maryland, and Florida (among others) are now banding together, claiming damages exceeding $13 billion. This legal action questions the longstanding practices within the real estate sector, particularly the commissions paid to buyer brokers.
With the federal court’s endorsement, the lawsuit will represent both past and future homesellers, potentially involving thousands of individuals. The legal argument draws on economic analysis, suggesting that the collective damages could spiral into tens of billions of dollars.
The National Association of Realtors defends its model, emphasizing the efficiency and cost-saving aspects of its system. However, the legal challenges are mounting, with separate denial that the practice of sharing commissions violates antitrust laws.
As the legal battle unfolds, the real estate community is keenly observing the ramifications. With a postponed trial date now set for October, all eyes are on how this case might reshape the commission structures and practices in real estate transactions.