The U.S. Circuit Court of Appeals in Washington, D.C., has rejected a request from the National Association of Realtors (NAR) for a rehearing of the court’s decision allowing the Department of Justice (DOJ) to reopen an investigation into the trade organization.
The legal battle over the DOJ investigation has been ongoing since the Trump administration. In November 2020, the DOJ had agreed to close its investigation into NAR after reaching a settlement on an antitrust probe related to buyer agent compensation. However, in July 2021, the Biden administration withdrew the settlement and reopened the investigation. Following objections from NAR, a three-judge panel in D.C. ruled in April 2024 that the DOJ could proceed with the investigation. NAR’s petition for a rehearing was denied on Friday.
Both NAR and the DOJ have not yet provided comments on the recent developments.
During the legal proceedings, NAR settled a class-action lawsuit in Missouri in March, agreeing to pay $418 million over four years to home sellers. NAR also made changes to its rules, including removing the requirement for buyer agent compensation offers on multiple listing services, effective August 17.
Since the Missouri settlement, several similar lawsuits have been filed across the country, involving major real estate brokerages like Anywhere, Keller Williams, and RE/MAX.
In addition to the denial of NAR’s rehearing request, there have been other developments related to the DOJ and Realtor associations. The California Association of Realtors announced that it will release new forms for its members on July 24, following a formal inquiry by the DOJ into the association’s forms. The DOJ expressed concerns about potential loopholes that could allow Realtors to bypass the new rules coming into effect soon.
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