Class Action Suit Against Nar + 4 National Brokerages, Re: 6% Comission

[Riick]

A class-action suit aims at real estate agents & their tools (including MLS). Industry watchers think it may revolutionize the way Americans buy and sell what's typically their biggest asset.

Filled in Chicago, on behalf of anyone who sold a home through one of 20 of the largest MLS over the past five years, it charges that NAR, and the four largest national real estate brokerages, and the Multi-List Services they use, have conspired to require home Sellers to pay the Broker representing the buyer “at an inflated amount,” in violation of federal antitrust law.

https://www.marketwatch.com/story/big-name-lawsuit-could-upend-realtors-and-their-6-fee-2019-03-19

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[Terrel L. Shields]

Didn't a similar suit fail 15 or so years ago?

 

[Restrain]

Yes the suit failed. Texas had to allow limited representation listings etc because of a lawsuit, as have all other states. If Bob’s RE sells at 6%, there is nothing preventing the seller from going to Jane’s RE and doing a limited representation at 1% or $500 to just list in MLS. Unless there is something in writing saying all have to do the same representation at 6%,the suit is DOA.

 

[Riick]

NAR has been around (1908) since before the days of the Trust-Busters; They've been through all this more than once. With well over a million members, who they can mobilize, pretty strong pressure group too.
Where's a good place to stock-up on popcorn for the show?

 

[Tim The Enchanter]

If these high zoot shysters think there is a case, maybe there is a case.
Try Orville Redenbacher popcorn. Do they still make that?

 

[Eli]

NAR is good. I am crazy about them. They help me tremendously in market value appraisals. Now, could it be reformed better? Probably. I think them getting more in the market value business is a problem. Even real estate agents and brokers in Tennessee will tell you that is not a good idea. State govt will eat it up. FTC, CFPB....etc etc.

Think about it. I'm selling this and my fellow agent is appraising it (valuing it). evaluation.

 

[Joe Flacco]

Buyer Broker Commission Rule protects Realtors from competition because it guarantees that a buyer will use the services of a salesperson since their commission is paid by the seller. It is a very big deal.

 

[Michigan CG]

NAR is one of the most powerful organizations in the country. This law firm is not exactly small shrimp. It will be interesting to watch.

 

[Raven59]

Complaint states NAR prohibits seller and buyers from negotiating over the amount of the commission paid to the buyer broker. The Code of Ethics and MLS Listing Policy all state the commissions between buyers and sellers can be negotiated. The lawsuit has no bases.