The court is set to approve the latest deal in an antitrust commission case against a New England-based mega multiple listing service, allowing commission sharing in the multiple listing system.
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The judge overseeing the case has scheduled a preliminary approval hearing for the proposed settlement on April 1. The U.S. Department of Justice has until then to review the deal.
Here are some key points from the case:
- The case, known as Nosalek, seeks class-action status and alleges that commission sharing inflates seller costs and violates the Sherman Antitrust Act.
- MLS Property Information Network (MLS PIN) is the defendant in the case, not the National Association of Realtors.
- MLS PIN, with 44,600 subscribers in 2023, did not opt into a nationwide settlement, keeping the case ongoing.
- The proposed settlement allows sellers to make pre-emptive offers of compensation to buyer brokers, which differs from the NAR settlement.
Under the proposed settlement, MLS PIN would remove the requirement for homesellers to offer compensation to buyer brokers and introduce new guidelines for commission negotiations.
The current version of the deal increases the settlement fund and expands coverage to all real estate listings.
Both the plaintiffs and MLS PIN support the proposed settlement and oppose the DOJ’s intervention in the case.
They argue that restricting compensation offers would hinder market competition and consumer choice.
Ultimately, the case highlights the ongoing debate over commission sharing practices in the real estate industry.
The proposed settlement does not shed light on cooperative compensation but rather drives it further into obscurity, making it more challenging for sellers (and buyers) to access the necessary information for an informed decision.
The Plaintiffs argue that potential Class Members are equally or better served under the proposed settlement compared to the NAR settlement.
The court is now waiting for a response from the DOJ.
Contact Andrea V. Brambila via email.
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