Officials at the National Association of Realtors are hoping to take a deep breath with the final approval of its Sitzer/Burnett deal drawing near. But the Department of Justice has a word of warning: don’t.
The DOJ calls on the trade group to clarify that the rule changes in its $418 million settlement don’t shield it from future federal enforcement of antitrust violations. The agency filed a Statement of Interest two days ahead of the final settlement hearing in the landmark commissions case, Real Estate News reported.
The DOJ also raised worries about the explosion of buyer agent agreements, which brokers and prospective buyers are signing before home tours under NAR’s new rules. The federal agency expressed concern the agreements could harm buyers and buyer broker business.
“It bears a close resemblance to prior restrictions among competitors that courts have found to violate the antitrust laws in other proceedings and could limit — rather than enhance — competition for buyers among buyer brokers,” the DOJ stated.
The agency said the provision regarding buyer agent agreements could be eliminated altogether, or at least it could be made clearer that antitrust violations would still be pursued where necessary.
The statement doesn’t take an official position on the settlement, but casts a shadow over the proceedings.
The two sides remain locked in a dispute over an investigation the DOJ launched five years ago into NAR’s commission policies, which has seen starts and stops before a swell of antitrust cases emerged in various markets.
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The agency has kept its hands off NAR’s settlement in Sitzer/Burnett, though it has raised concerns with provisions proposed in other lawsuits, such as the one known as MLS PIN.
The DOJ has the power to continue investigating NAR, but may not, considering the new rules and Donald Trump’s incoming administration.