The National Association of Realtors and Real Estate Industry Receive Final Approval for Commission Lawsuit Settlement
On Tuesday, Judge Stephen Bough of the U.S. District Court in Kansas City, Missouri, granted final approval to the National Association of Realtors (NAR) commission lawsuit settlement agreement. This approval also extends to HomeServices of America and the multiple MLSs and brokerages that opted into NAR’s settlement.
Despite objections from the Department of Justice regarding buyer broker representation agreements, Judge Bough approved the settlement. The DOJ raised concerns about potential limitations on competition among buyer brokers due to the required agreements.
Kevin Sears, NAR’s president, emphasized the importance of the settlement for NAR members, home buyers, and sellers. The settlement, which includes a $418 million payment by NAR and business practice changes such as removing offers of compensation from the MLS, aims to promote transparency, competition, and consumer choice.
Over 500,000 people have submitted claims to be part of the settlement, with eligible home sellers having until May 2025 to file a claim. The settlement also protects brokerages with less than $2 billion in sales volume and Realtor-affiliated MLSs.
HomeServices of America will pay $250 million into the settlement fund. In a statement, Chris Kelly, HSA executive vice president, expressed pleasure at the final court approval of the settlement and highlighted the company’s commitment to providing exceptional service.
This marks the third round of commission lawsuit settlements approved by Judge Bough, following settlements with major real estate companies in earlier months.
This article will be updated with additional information and commentary when available.
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