National Association of Realtors Found Liable for Inflating Commissions
A US jury on Tuesday found the National Association of Realtors (NAR) and some residential brokerages liable to pay $1.78 billion in damages for conspiring to artificially inflate commissions for home sales.
The lawsuit, which was filed in 2019, alleged that the NAR and its members have for decades engaged in anti-competitive practices to keep commissions high. These practices include requiring sellers to pay buyer agent commissions, even if the buyer is not represented by a real estate agent, and setting minimum commission rates.
The jury found that the NAR and the other defendants had violated federal antitrust laws. The plaintiffs are now seeking to have the court issue an injunction to prevent the NAR from continuing its anti-competitive practices.
The outcome of this case could have a significant impact on the real estate industry. If the injunction is granted, it could lead to lower commissions for home sellers. This could make homeownership more affordable for many Americans.
What does this mean for home buyers and sellers?
It is too early to say exactly what the impact of this verdict will be on home buyers and sellers. However, it is possible that commissions could come down if the injunction is granted. This would be good news for home buyers, as it would make buying a home more affordable.
For home sellers, the impact could be mixed. On the one hand, lower commissions would mean more money in their pockets. On the other hand, it is possible that fewer real estate agents would be willing to represent sellers if commissions are lower. This could make it more difficult to sell a home.
What happens next?
The defendants have already said that they plan to appeal the verdict. This means that the case could be tied up in court for several years. Even if the verdict is upheld, it is unclear when the injunction would take effect.
In the meantime, home buyers and sellers should continue to negotiate commissions with their real estate agents. It is important to get multiple quotes and to choose an agent who is willing to work with you to get the best possible deal.
Here are some additional details about the case:
- The lawsuit was filed on behalf of home sellers in Missouri, Kansas, and Illinois.
- The defendants include the NAR and four real estate brokerage firms: HomeServices of America, Keller Williams Realty, RE/MAX, and Anywhere Realty.
- The jury found that the defendants had violated the Sherman Antitrust Act and the Clayton Antitrust Act.
- The plaintiffs are seeking $1.78 billion in damages, plus an injunction to prevent the NAR from continuing its anti-competitive practices.
- The defendants have said that they plan to appeal the verdict.
This is a developing story and we will provide updates as they become available.
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