An antitrust case against realtors? The complaint for this class action claims that the National Association of Realtors (NAR) has combined with a number of broker companies, such as Realogy Holdings Corp., Re/Max, LLC, and Keller Williams Realty, Inc., to monopolize their market. They do this, the complaint says, by requiring adherence to NAR’s “rules, practices, and guidelines” as a price for access to listing services that list the homes for sale in an area. The complaint claims that this results in home buyers “unwittingly paying too much for, and receiving too little from. Services offered by real estate agent members of NAR.”
The class for this action is all persons who, between December 1, 1996 and the present, bought residential real estate that was listed on an NAR MLS.
It may appear to home buyers that they are not paying anything for having an agent assist them. After all, the payment to the buyer’s agent will come out of the purchase price. But the complaint alleges that they do pay a price: “supracompetitive commissions at levels fixed by the Defendants [in this case], which in turn lead to higher home prices paid by buyers.”
NAR has “hundreds of thousands of brokers” as members, who join for the benefits it offers them. One of these is access to MLSs—multiple listing services—which list the homes for sale in a given area. Seller’s agents (or seller brokers) list properties with these services to attract buyers, and buyer’s agents use them to find homes to show buyers. If a property is not listed on these services, it is very difficult for buyers to know that it exists.
The complaint contends, “NAR MLSs are the dominant MLS in the United States. Even some independent MLSs require brokers to be members of NAR to access their database.”
However, members of NAR are required to follow NAR’s rules, policies, and practices, and the complaint alleges that these “significantly restrain competition.”
For example, seller brokers who list on an MLS must make a “blanket unilateral offer of compensation” to any buyer agent who find a buyer for the home. A blanket offer requires the same terms of compensation to any buyer agent, regardless of that agent’s qualifications or experience or services offered, and regardless of any agreement made with the buyer. Agents may not even disclose the details of these commissions, such as what amount goes to the seller agent and what to the buyer agent.
Buyer agents are also allowed to “filter” the MLS listings so that they don’t offer buyers home with lower commissions, and they are restricted from being able to “modify the buyer agent commission after the buyer agent conveys a purchase offer[,]” the complaint says.
The complaint alleges that the conspiracy between NAR and the brokers causes buyers to pay higher prices that they otherwise would have and constitute a restraint of trade.
Article Type: LawsuitTopic: Antitrust
Most Recent Case Event
National Association of Realtors Buyer’s Agent Antitrust Complaint
February 25, 2021
An antitrust case against realtors? The complaint for this class action claims that the National Association of Realtors (NAR) has combined with a number of broker companies, such as Realogy Holdings Corp., Re/Max, LLC, and Keller Williams Realty, Inc., to monopolize their market. They do this, the complaint says, by requiring adherence to NAR’s “rules, practices, and guidelines” as a price for access to listing services that list the homes for sale in an area. The complaint claims that this results in home buyers “unwittingly paying too much for, and receiving too little from. Services offered by real estate agent members of NAR.”
National Association of Realtors Buyer’s Agent Antitrust ComplaintCase Event History
National Association of Realtors Buyer’s Agent Antitrust Complaint
February 25, 2021
An antitrust case against realtors? The complaint for this class action claims that the National Association of Realtors (NAR) has combined with a number of broker companies, such as Realogy Holdings Corp., Re/Max, LLC, and Keller Williams Realty, Inc., to monopolize their market. They do this, the complaint says, by requiring adherence to NAR’s “rules, practices, and guidelines” as a price for access to listing services that list the homes for sale in an area. The complaint claims that this results in home buyers “unwittingly paying too much for, and receiving too little from. Services offered by real estate agent members of NAR.”
National Association of Realtors Buyer’s Agent Antitrust Complaint