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
(iStock)

Mortgage requests surge ahead of Thanksgiving

Mortgage requests surge ahead of Thanksgiving
Vanke US managing director Kai-yan Lee, RFR’s Aby Rosen and 100 East 53rd Street (Photos via Foster + Partners and Getty)

Vanke seeks to remove RFR from Midtown condo project

Vanke seeks to remove RFR from Midtown condo project
Hippo founders Assaf Wand and Eyal Navon (LinkedIn)

Home insurance startup Hippo raises $350M

Home insurance startup Hippo raises $350M
Prices increased 6.6 percent year-over-year in September (iStock)

US home prices surged 6.6% in September

US home prices surged 6.6% in September
From left: Edison Properties CEO Robert Selsam, Ironstate Development's Michael Barry, Stellar Management founder Larry Gluck (LinkedIn; Gluck Family Foundation)

These developers could benefit the most from Soho’s rezoning

These developers could benefit the most from Soho’s rezoning
176 North 6th Street and 16 South Portland Avenue in Brooklyn (StreetEasy; Google Maps)

Brooklyn luxury market surges with nearly $73M in contracts

Brooklyn luxury market surges with nearly $73M in contracts
1045 Madison Avenue and 300 Central Park West (The Benson; Wikipedia Commons)

Manhattan luxury market shows signs of progress with 25 deals

Manhattan luxury market shows signs of progress with 25 deals
TikTok's biggest stars include (from left) Bryce Hall, Griffin Johnson, Addison Rae, Charli D'Amelio and Dixie D’Amelio (Getty)

Firm that manages TikTok party houses goes public

Firm that manages TikTok party houses goes public
arrow_forward_ios

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

Loading...