A group of home sellers in Northern California has filed a lawsuit against the National Association of Realtors (NAR) and a number of national real estate brokerages and realtor trade associations for allegedly artificially inflating commissions paid to buyer-side brokers.
Among those named as defendants in the lawsuit filed in San Francisco last week were the NAR, Re/Max, Keller Williams, property-listing database Bay Area Real Estate Information Services, brokerages Anywhere, Compass, and eXp World Holdings.
The lawsuit's plaintiff is a Marin Country woman who brought the case on behalf of a proposed class of home sellers in the state.
Other Cases Against the NAR
The lawsuit in California is one of a growing number of lawsuits filed against the NAR and other brokerages. It comes after a Kansas City jury awarded a class of home-sellers nearly $1.8 billion in damages. In that case, the jury ruled that the NAR conspired with HomeServices of America and Keller Williams Realty to artificially inflate the commissions paid to real estate agents. Keller Williams reached settlements with the plaintiffs prior to the trial. However, the settlements are subject to court approval.
A similar lawsuit was also filed in northern Georgia where the NAR, HomeServices of America, Keller Williams, RE/MAX, Christie's International Real Estate, Anywhere, Compass, Engel & Völkers, and HomeSmart were named as defendants in the initial complaint. Some local franchises and subsidiaries like PalmerHouse Properties and Re/Max Metro Atlanta were also named in the initial complaint.
An amendment complaint filed last week named other national firms and local independent brokerages, including Beacham & Company, Tracey Cousineau Real Estate, Sander Realty Holdings, The Justin Landis Group, and Chapman Hall Realtors in the Georgia lawsuit, as reported by HousingWire.
Similar lawsuits have also been filed in recent weeks in federal courts in New York, Pennsylvania, and Texas.
The landmark ruling in Kansas has already made changes to the real estate industry. For instance, the NAR has already revised its agreement and reduced mandatory buyer commissions to $0. The Real Estate Board of New York (REBNY) also announced it seller-side agents would no longer be able to offer compensation or directly compensate a buyer's agent beginning January 2024.
