With the final approval hearing for the NAR commission lawsuit settlement scheduled for Nov. 26 drawing near, there are various perspectives questioning its implications.
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Every week on The Download, Inman’s Christy Murdock delves deeper into the most-read stories of the week to provide you with insights for a head-on start to Monday. This week: As the Nov. 26 hearing for final approval of the National Association of Realtors commission lawsuit settlement approaches, voices from all sides are questioning its wisdom.
Just over a year ago on Halloween, the Sitzer | Burnett verdict was delivered, sparking a year of turmoil, inquiries, and concerns within the real estate sector. On March 15, NAR reached a settlement with implementation slated to commence no later than Aug. 17. Many viewed this implementation as the resolution to the ongoing issues, with final approval pending on Nov. 26.
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However, a member of the settlement class, who is also a law professor with strong opinions on the post-settlement landscape, is now challenging the validity of the settlement and opposing its finalization.
Tanya Monestier, a contracts law professor at the University of Buffalo who has been critical of new transaction forms since NAR’s proposed settlement was enacted, is now taking her objections to the judge.
Having sold a home in Rhode Island in 2022, Monestier is a part of the homeseller class covered by the settlement and has filed an objection in U.S. District Court for the Western District of Missouri.
In her filing, Monestier urges the court not to grant final approval to the NAR deal on Nov. 26 and to dismiss the plaintiffs’ attorneys’ request for $333 million in fees from the combined $1 billion settlements already reached with NAR and other defendants in seller-led commission lawsuits.
What initially seemed like a legal formality is now clouded with uncertainty as concerns mount regarding attorney fees and the relatively modest award amounts expected for homesellers.
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Meanwhile, agents are adapting to the new norms and assessing the impact of settlement provisions — alongside this year’s sluggish market — on their commissions.
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