Realtors Accused of Colluding to Inflate Commissions: $418 Million Settlement Approved by Judge
In a groundbreaking case that has shaken the real estate industry, the National Association of Realtors (NAR) has been accused of colluding to artificially inflate commissions on property sales. This has led to a $418 million settlement that could change the way Americans buy and sell homes forever.
The case was brought against NAR by home sellers in Missouri and has inspired multiple copycat lawsuits across the country. The lawsuit claimed that brokers were able to collude on sales, leading to inflated commissions for NAR agents.
As part of the settlement, homeowners who sold properties in the last seven years may be eligible for a payout. To qualify, sellers must have listed their home on a multiple listing service (MLS) and paid a commission to a real estate brokerage. Claims must be submitted by May 9, 2025.
The NAR, which has 1.5 million members, will be implementing sweeping rule changes to the way their agents operate as a result of the settlement. This includes measures to prevent the steering of buyers to properties with higher commissions.
While the settlement has received preliminary approval from a federal judge, it is still subject to final court approval. The case has also prompted the Justice Department to reopen its investigation into the NAR to scrutinize broker commissions and marketing practices.
Attorney Michael Ketchmark, who represented sellers in the suit, hailed the settlement as a step towards much-needed change in the real estate industry. The NAR has stated that the settlement is in the best interests of all parties involved.
Realtors have expressed concerns over how the litigation will impact their earnings, with some fearing that it may lead to a decline in the number of active agents. The class-action lawsuit has the potential to save homeowners billions of dollars in the long run.
This landmark case serves as a stark reminder of the importance of fair practices in the real estate market and highlights the need for transparency and accountability among industry professionals. The outcome of this lawsuit could have far-reaching implications for both buyers and sellers in the housing market.
