The National Association of REALTORS(r) claims it will continue to argue its case against two class action lawsuits that challenge the structure of compensation for real estate even though one of NAR’s co-defendants has reportedly reached a deal on a settlement.
Anywhere Real Estate, formerly known as Realogy Holdings Corp., has agreed to resolve any claims made against the firm in two separate cases called Sitzer/Burnett and Moehrl, according to reports. The details regarding the deal, which requires court approval, have yet to be made public. There are no other parties named as defendants in these lawsuits, such as NAR, as well as a variety of real estate firms and MLSs, who have formally accepted a settlement.
The announcement of the settlement comes just one month prior to that the Sitzer/Burnett lawsuit is scheduled to be tried.
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“Settlement is always an option for any party in litigation. NAR’s commitment to defend ourselves in court remains unchanged, and we are confident we will prevail in proving the lawfulness of the rules under attack,” Mantill Williams, NAR’s vice president of public relations and communication strategy, said in a statement. “Pro-competitive, pro-consumer local MLS broker marketplaces ensure equity, efficiency, transparency and market-driven pricing options for home buyers and sellers. The practice of the listing broker paying the buyer broker’s compensation saves sellers time and money by having so many buyer brokers participating in that local marketplace and, thus, creating a larger pool of buyers for sellers. For buyers, these marketplaces save them the burden of extra costs at closing, enable them to receive professional representation and make homeownership possible for more people.”
The lawsuits assert that NAR rules are in violation of antitrust laws and that they increase the amount of money paid to buyers’ agents by requiring a listing agent to pay the buyer’s agent to list a property in the MLS. NAR claims that the lawsuits falsely portray the rules of the association as anticompetitive. The regulations require listing brokers to decide, after collaboration with their clients as well as their clients, the amount of compensation provided to a buyer’s agent when they advertise the MLS listings. Additionally, NAR says buyer’s agents have the right to discuss compensation arrangements with listing brokers, which differs from the amount listed within the MLS. The NAR or the MLS have no influence regarding the amount of commissions for brokers.
“The U.S. model of independent, local broker marketplaces is widely considered the best value and most efficient model in the world, with no hidden or extra costs and with more complete, verified information compared to other countries,” Williams stated. “We look forward to arguing our case in court.”
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