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The Northern Illinois U.S. District Court has certified the class action of sellers suing NAR and seven corporate real estate brokerages that operate in 20 MLSs in 13 states across the country. The case does not include MLSs in California. The plaintiffs allege that the MLS structure and rules inflate commissions paid by sellers due to MLS rules. NAR vigorously contests the allegations and maintains the MLSs are very procompetitive benefiting the public as well as the real estate professionals that serve them.
The court’s ruling denied the request to exclude the plaintiffs’ experts’ testimony. Of course, NAR and others will also have the opportunity to produce experts indicating the procompetitive nature of the real estate industry and individually negotiated commissions that are beneficial to both home buyers and sellers. The case has yet to be tried before a jury.
Concerns have been raised by observers about the impact of any result that would radically change practices that are beneficial to first-time or marginal homebuyers. These buyers need representation in difficult transactions but may not be able to obtain such services if the court rulings effectively result in buyers paying up-front payments for professionals in a way that reduces available cash for down payments.
March 30, 2023
