The Kansas City jury National Association of Realtors, Home American Services and keller williams Guilty of conspiring to inflate or maintain high commission rates through NAR’s clear cooperation rules in the Sitzer/Barnett Buyer Broker Fee Litigation.
The defendants were ordered to pay $1.78 billion in damages. If triple damages were incurred, NAR and the brokerage could potentially end up paying more than twice that amount. It also opens the door to further class action lawsuits in other states.
The jury reached its verdict after just over two weeks of testimony from the plaintiffs and defendants. In testimony, the home sales plaintiffs and their lead attorney, Michael Ketchmark, said that despite the defendants’ antitrust laws and regulations, trade associations and corporate brokers are intent on maintaining high commission rates. claimed that it violated its own regulations.
Judge Stephen Baugh, who is overseeing the case, will have to issue a final ruling on the case before sentencing. He has wide discretion to invoke injunctive relief.
In a worst-case scenario for defendants, Baugh could impose a nationwide ban on cooperative compensation rules for multiple listing services, which would allow listing agents and home sellers to predetermine buyer agent commission rates. be unable to do so. Listing agents are also prohibited from sharing commissions with buyer agents, and buyer agent commission rates are not published on the MLS.
Alternatively, Bo could keep elements of the rule intact and require offers of at least 1 cent in “collaboration fees” in the MLS space.
The antitrust class action lawsuit, first filed in 2019, also included: RE/MAX and anywhere However, the two, as defendants, reached settlements in this case and two other Commission cases. Merle and Nosarek in September.
Keller Williams spokesman Darryl Frost said no key evidence was allowed to be entered and hinted that an appeal was being filed.
“I am disappointed that the court did not allow the jury to hear important evidence that cooperative compensation is available under Missouri law before deciding this case,” he said in a statement after the verdict. said. “This is not the end. Keller Williams has presented evidence regarding the 100-year-old practice of seller’s agents providing commissions to other agents who assist in marketing and selling homes, pursuant to cooperative compensation laws.” “We will continue to consider all options, including an avenue of appeal, as we evaluate the verdict and court record.”
A HomeServices spokesperson confirmed that the company will appeal the Missouri ruling.
“Today’s decision means buyers will face further obstacles in an already difficult property market, and sellers will find it even more difficult to realize the value of their homes,” the spokesperson said. “Homebuyers may also be forced to decline professional help in making perhaps the most complex and important financial transaction of their lives.”
HomeServices said in a statement that the cooperative coverage provision “will help ensure that millions of people, with the help of real estate professionals, achieve the American dream of homeownership.”
This is breaking news and will be updated throughout the day.
