Verdict Threatens NAR’s Grip on the Real Estate Industry

NAR plans to appeal a verdict in a case that many say will weaken the association’s grip on the real estate industry. NAR and several other defendants were convicted of conspiring to keep brokerage commissions artificially high. Many industry experts are now speculating on how this will change the way homes are bought and sold. But NAR said in a news release that this case is far from over.   The class-action lawsuit included more than 260,000 people who sold homes in Missouri, Kansas, and Illinois between 2015 and 2022. They objected to the commissions sellers were required to pay for agents on both sides of the deal. The fee is typically 5 or 6% of the sales price with the seller’s agent handing over half of that fee to the buyer’s agent. Many of the rules for this process are imposed by NAR.   After a two week trial in Kansas City, Missouri, the jury handed over a guilty verdict against NAR, Keller Williams, and HomeServices of America along with two of its subsidiaries. The judge also slapped them with $1.8 billion in damages which could be tripled under U.S. antitrust laws. Re/Max and Anywhere Real Estate were part of the lawsuit as well, but they settled with plaintiffs earlier this year. Those settlements included a combined $138 million damage award and an agreement that they would no longer require NAR membership for their agents...   ...You’ll find NAR’s statement, and articles on the lawsuit in the show notes for this podcast at newsforinvestors.com. Please remember to subscribe to this podcast, and join RealWealth for free for more information on how you can invest in wealth-building rental properties in markets across the nation.    Thanks for listening! Kathy Fettke   Links:   https://www.reuters.com/legal/missouri-jury-hits-nar-real-estate-companies-with-18-bln-damages-2023-10-31/   https://www.wsj.com/finance/investing/the-way-you-pay-to-buy-or-sell-a-home-is-about-to-change-4e1a4fbc   https://www.nar.realtor/breaking-news/update-in-case-of-burnett-v-nar-et-al