Arizona is also experiencing a wave of commission lawsuits. In a copycat lawsuit filed last Friday in federal district court in Arizona, Joseph Masiello, an Arizona resident and home seller, alleges that multiple real estate companies conspired to artificially inflate real estate agents’ fees. I made an accusation.
Masiello sold his Arizona MLS home home smart “In or about October 2021,” the filing says, Masiello was “required to pay a 2% commission to the seller’s broker ($8,200) and a 2.5% commission to the buyer’s broker ($10,250).”
Like other Commission cases, the Masiello case focuses on: National Association of Realtors Participation rules. Requires the listing broker to make a blanket offer of compensation to the buyer’s broker in order to list a property on the real estate agent-affiliated MLS.
“This archaic commission structure has remained insulated from market forces for nearly 30 years due to longstanding collusion among defendants to introduce and enforce anticompetitive regulations in the residential real estate market.” says the complaint. “There is no procompetitive justification for Defendants’ conspiracy to perpetuate high fees to the detriment of Arizona homeowners. Even if the alleged benefits were derived, the alleged benefits would substantially outweigh the anticompetitive effects of the conspiracy and would therefore not be justified.
The lawsuit targets NAR’s participation rules but does not name NAR as a defendant. Instead, the lawsuit lists the state’s largest real estate agent organizations, including: Arizona Association of Realtors, Phoenix Association of Realtors, Scottsdale Area Association of Realtorsand West and Southeast Realtors of the Valley Incorporated; As well as several local and national brokerages including: home smart, My home group, Realty One Group Arizona, West USA Realty, Hague Partners Holdings, real estate company executive, arizona best real estate, north & company, silver leaf real estate, walty daily local luxury, Christie’s International Real Estate, broker, Roy H. Long Realty Companyand Tierra Antigua Realty.
The complaint alleges that local real estate agent organizations “participated in the conspiracy by agreeing to adopt, implement, and enforce in Arizona, through their management of the Arizona MLS, rules identical to those promulgated by the NAR.” “and promoting a conspiracy.”
Like all other copycat lawsuits filed after the Sitzer/Barnett jury verdict in late October 2023, the Masiello suit uses broker defendants to list and sell homes on the Arizona MLS and pays for them. It is seeking class action status against all individuals who have committed the crime. Buyer Brokerage Fee from January 5, 2020 to present.
The plaintiffs also seek damages three times the amount determined by the trial or tribunal, injunctive relief to prevent the defendants from engaging in conduct that the plaintiffs consider “unlawful,” and a jury trial.
The defendants did not immediately respond to requests for comment.
