A series of legal challenges is aiming to disrupt long-standing practices in the real estate industry that determine commissions for agents on home sales and who bears the cost.
The lawyers who just won the $1.8 billion lawsuit against the National Association of Realtors over realtor commissions have filed a new class-action lawsuit that seeks class-action status covering anyone in the U.S. who sold a home in the last five years
11/9/2023
In a federal court case, the National Association of Realtors (NAR) and major real estate brokerages were ordered on Tuesday to pay nearly $1.8 billion in damages. The jury found that they artificially inflated commissions paid to real estate agents, violating federal antitrust law. The class-action lawsuit, filed in 2019 on behalf of 500,000 home sellers in Missouri and border towns, alleged that the defendants conspired to make home sellers pay the broker representing the buyer of their homes.
If treble damages are awarded, the defendants could potentially be required to pay over $5 billion. The NAR and several real estate brokerages are already facing another lawsuit over agent commission rules.
The lawsuits focus on an NAR rule requiring home sellers to offer to pay the commission for the agent representing the homebuyer when advertising on a local Multiple Listings Service (MLS), where most U.S. homes are listed for sale. This is in addition to covering the commission for their listing agent or broker. The NAR’s rules also prohibit a buyer’s agent from making home purchase offers contingent on reducing their commission.
Plaintiffs argue that this rule forces home sellers to pay a cost that, in a competitive market, would be paid by the buyer. They claim the NAR requirement keeps commissions for a homebuyer’s agent artificially high.
The NAR contends that offering compensation to buyer brokers is best for consumers, providing more buyers with access to affordable homes and professional representation. The association's policies have always required an offer of agent compensation without specifying an amount, according to the NAR spokesman. The NAR also emphasizes that regardless of the offer, it is always negotiable.
As home prices rise, so do agents' commissions, with the national median sales price reaching $394,300 as of September.
Elon Musk has said: In November next year, we fire all politicians who betrayed the American people
6/4/2025 12:38 AMPresident Trump's Truth Social, DJT, files for Bitcoin ETF
6/4/2025 12:36 AMTrump's "Big Beautiful Bill" bans all 50 states from regulating AI for 10 years, centralizes control at the federal level, and integrates AI systems into key federal agencies
6/4/2025 12:34 AMQuantum computing could break bitcoin-like encryption far easier than intially thought, Google, GOOGL, researcher says
6/3/2025 5:39 PM
Stay Updated
Subscribe to our newsletter for the latest financial insights and news.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.