Maurice Muhammad argues that the “monopoly” of NAR, state Realtor associations, and local MLSs limits competition, drives up prices, and unfairly influences minority brokers and brokers. There is.
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A Pennsylvania real estate broker sues for $5.6 million against the National Association of Realtors, state association of Realtors, and local multiple listing service over the requirement to become a real estate agent to access the MLS. There is.
On October 16, Maurice Muhammad, broker of record for Progressive Realty in Allentown, filed a complaint against NAR, the Pennsylvania Association of Realtors, and the Greater Lehigh Valley MLS (GLVMLS) for “violating federal civil rights law, illegal Discriminatory practices, violations of federal antitrust laws, breach of contract, and creation of a monopoly system that imposes forced membership.”
Muhammad filed the lawsuit in the Eastern District of Pennsylvania as a pro se, or personal representative.
“The mandatory membership requirements imposed by NAR, PAR, and GLVMLS create a coercive environment that disproportionately impacts minority professionals who cannot afford to pay mandatory membership fees.” says the complaint.
“Defendants used their monopoly over MLS services to prevent the establishment of alternative trading organizations, thereby stifling competition and increasing their control over the real estate profession.”
Maurice Muhammad
Muhammad is not the only broker who opposes the requirement that many MLSs join the NAR in order to access the MLS. In August, two Michigan real estate brokers and an agent filed a class action lawsuit against NAR, their state and local real estate agent associations, and Real Comp II, the state’s largest MLS, challenging this requirement. I woke you up.
Muhammad’s complaint also alleges that NAR, PAR, and GLVMLS harass minority real estate professionals through “selective enforcement of professional rules, unfair application of disciplinary sanctions, and exclusion of minority professionals from leadership positions.” They claim that they are discriminating.
“Defendants require real estate professionals to join NAR, PAR, and GLVMLS in order to do business, even though many minority members receive little benefit from such membership. , despite facing discrimination within these organizations,” the complaint adds.
Because the majority of industry association leadership positions are held by “non-minority individuals,” the complaint states that the trade association’s policies and rules “do not address the unique challenges faced by minority professionals.” “There is no such thing,” and also addresses concerns raised by Mr. Muhammad and others. Members of minorities are “consistently ignored by defendants, perpetuating a system of exclusion and discrimination.”
The complaint does not provide any specific examples of the alleged discrimination that Muhammad said he personally experienced, or of concerns raised by members of the minority group. This is in reference to a report by Community Legal Services of the Lehigh Valley (CLCV) that allegedly “revealed systemic bias in the way real estate transactions involving minority professionals and clients were handled.” However, this report is not included in the complaint.
Mr. Inman has requested this information from Mr. Muhammad and will update this article if he receives a response.
The lawsuit alleges federal civil rights violations, breach of contract, due process violations under the U.S. Constitution, and antitrust violations under the Sherman and Clayton Acts.
“By maintaining a monopoly on MLS services and forcing real estate professionals to enroll in the NAR, PAR, and GLVMLS, thereby unlawfully restricting transactions, Defendants are using federal monopolies, including the Sherman Act and the Clayton Act, to “This was a violation of the Prohibition Act,” the complaint states.
“These practices restrict competition, drive up prices, and discourage the emergence of alternative MLS providers, all to the detriment of professionals and consumers alike.”
The complaint seeks a jury trial, seeks a permanent injunction requiring the trade association to change its processes “to ensure the fair treatment of all members and eliminate mandatory membership requirements,” and requires the trade association to provide “alternative They are seeking an order requiring them to prepare a plan. an MLS system that does not require membership in the NAR, PAR, or GLVMLS,” an order requiring industry associations to restructure their governance to expand minority representation, punitive damages and compensation of “not less than $5,600,000.” damages and other items.
GLVMLS declined to comment on the matter, citing legal advice. PAR also declined to comment, citing pending litigation.
Inman has reached out to NAR and will add comments to this article if they respond.
Read the complaint (reload the page if the document does not appear).
Email Andrea V. Brambilla.
