NAR hit with another antitrust suit over buyer-broker commissions

Complaint alleges home sellers are paying inflated buyer-broker commissions, the second such recent suit

National /
Apr.April 17, 2019 09:30 AM
NAR president John Smaby (Credit: NAR and Pixabay)

NAR president John Smaby (Credit: NAR and Pixabay)

Even more home sellers are taking aim at the National Association of Realtors and major home-selling brokerages over buyer commissions and multiple listings services, according to a new antitrust lawsuit filed this week.

The suit, filed in the Northern District of Illinois by Sawbill Strategic Inc., alleges that the industry group and the “big four” home-selling brokerages — Realogy, HomeServices of America, RE/MAX and Keller Williams — are “conspiring to require property sellers to pay the broker representing the buyer of their properties, and to pay an inflated amount,” in 20 metropolitan areas, according to Inman.

The filing follows a near-identical suit filed last month against NAR by home-seller Christopher Moehrl of Minnesota, that takes issue with NAR rules that require sell-side brokers to offer buyer-broker compensation when listing a property on a MLS, a move that has driven up costs to the seller and whittled down competition.

Together, the lawsuits are seeking class-action status, on behalf of “thousands” of home sellers who were made to pay a commission to the broker representing the buyer of their homes in the last four years.

In response to the latest filing, NAR said the “complaint is baseless and contains an abundance of false claims,” according to a statement provided to Inman.

“The U.S. courts have routinely found that multiple listing services are pro-competitive and benefit consumers by creating great efficiencies in the home-buying and selling process.” [Inman] — David Jeans 


Related Articles

arrow_forward_ios
StreetEasy to hike rental listing fees by 50% on June 1
StreetEasy to hike rental listing fees by 50% on June 1
StreetEasy to hike rental listing fees by 50% on June 1
Robert Rahmanian, Louis Adler, Lyndsey Casagrande, Kenny Fung and Robert Reffkin (Getty)
Real New York sues Compass agents for breach of contract
Real New York sues Compass agents for breach of contract
Project Renewal CEO Eric Rosenbaum, Attorney Adam Leitman Bailey and 27 West 11th Street. (Google Maps, Facebook via Project Renewal, Bailey)
Greenwich Village site eyed for shelter has asbestos issues: lawsuit
Greenwich Village site eyed for shelter has asbestos issues: lawsuit
REBNY's James Whelan, Sen. Brad Hoylman and Assemblymember Emily Gallagher (Getty, Whelan via Anuja Shakya)
Bill to audit 421a gets hearing as pols put subsidy in crosshairs
Bill to audit 421a gets hearing as pols put subsidy in crosshairs
REBNY's James Whelan with Sen. Julia Salazar and Sen. Jabari Brisport (Getty, Brisport via Jabari for State Senate, Whelan by Anuja Shakya for The Real Deal)
It’s back: Lawmakers propose ban on broker fees
It’s back: Lawmakers propose ban on broker fees
Exterior and amenities of 85 Jay Street in Dumbo. (Front & York)
Two Brooklyn homes asking $8M go into contract
Two Brooklyn homes asking $8M go into contract
740 Park Avenue and 24 Leonard Street (Google Maps)
Steven Mnuchin’s Park Avenue pad tops Manhattan contracts last week
Steven Mnuchin’s Park Avenue pad tops Manhattan contracts last week
(Getty)
Where the lawsuits challenging NY’s 2019 rent law stand
Where the lawsuits challenging NY’s 2019 rent law stand
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...