The National Association of Realtors Class Action Lawsuit May Reach Settlement Approval by November 2024
The National Association of Realtors Class Action Lawsuit may be reaching its conclusion. The various groups involved have agreed to settlements worth up to $980 million. HomeServices agreed to pay $250 million, and The National Association of Realtors has agreed to pay $418 million.
The settlement agreement must still be approved by the judge overseeing the case – the final approval is scheduled to take place November 26, 2024.
If the settlement is approved, the judge will then begin coordinating with both parties and their attorneys on timelines, payouts, and any claims from settlement funding agreements.
It isn’t too late to receive compensation from this lawsuit. Anyone who is eligible for the class will still have until May 9, 2025, to file a claim.
About the National Association of Realtors Class Action Lawsuit
The National Association of Realtors is involved in a class action lawsuit that alleges that they and others in the real estate industry engaged in anticompetitive practices.
The lawsuit claims that the National Association of Realtors and several large real estate brokerages conspired to inflate broker commissions in violation of antitrust laws.
The case has made its way through the legal system leading plaintiffs and defendants to reach a proposed settlement of over $980 million.
If the settlement is approved, the National Association of Realtors will pay $418 million and HomeServices America will pay $250 million.
The final approval hearing is scheduled for November 26, 2024, and eligible class members can file claims until May 9, 2025.
Beyond Monetary Compensation
The settlement also includes industry reforms designed to increase transparency and fairness in broker commissions. These changes eliminate mandatory commissions and allow more negotiation flexibility for home sellers.
Many of these reforms are already being instituted as of October 2024 and have members of the real estate industry working toward compliance.
A Brief History of the National Association of Realtors Class Action Lawsuit
Real estate commissions are not new. If you’ve bought or sold a home in the last century, you have learned first-hand how expensive these commissions can be.
You have also undoubtedly been confused and frustrated when you were informed that commissions were non-negotiable, and that both the buyer’s agent and the sellers’ agent would receive a full commission.
Real estate agents have essentially been telling their customers, “This is just the way it is and there is nothing you can do about it.”
This has been the standard for buying or selling a home for a long time.
If you’ve ever sold a home, you have probably wondered why the buyer’s agent was entitled to the same amount of commission as the selling agent, given the disparate amount of work involved for the buyer’s agent.
Let’s face it – there is a lot more work involved in preparing a home for sale than there is in searching the MLS and then walking people through a bunch of homes until they find a home they want to buy.
So why does the buyer’s agent make the same amount of money? And why has this always been non-negotiable? Plaintiffs in the National Association of Realtors Class Action Lawsuit alleged that the association and some of the largest players in the real estate industry colluded to make sure this practice remained in place.
And in 2019 a group of home sellers in the State of Missouri decided to do something about it. They filed a lawsuit against the National Association of Realtors and other entities in the real estate industry.
The plaintiffs claimed that the buyer’s agent was overpaid and that the National Association of Realtors code of ethics, MLS Handbook, and the practices of corporate defendants like HomeServices America conspired to help inflate commission costs.
The plaintiffs went to trial in October of 2023 and the jury held the defendants liable for $1.78 billion in damages.
Prior to the trial, two brokerage defendants decided to settle for $138 million and $70 million, respectively. Then the National Association of Realtors agreed to settle for $418 million in damages and further agreed to institute a multitude of changes to prevent these unfair practices in the future.
What is The Significance of the NAR Class Action Lawsuit?
As of October 2024, the National Association of Realtors has already instituted changes that allow parties involved in buying or selling a home to negotiate commission rates.
When buying or selling a home you will no longer be bound to an archaic rule about real estate commission that was “made up” and enforced by a group of people who benefitted the most from keeping the practice in place.
In addition, those people who have been harmed by these practices are eligible to get some of their money back. If you’ve bought or sold a home, you may be able to claim your portion of the National Association of Realtors settlement. You have until May 9, 2025, to file a claim.
Is it too late to join the National Association of Realtors Class Action Lawsuit?
No, it is not. To receive National Association of Realtors and HomeServices settlement benefits, class members must submit a timely valid claim form by May 9, 2025.
Eligible date ranges vary depending on which MLS a class member’s home was listed under. Go to the www.RealEstateCommissionLitigation.com to learn more.
Summary National Association of Realtors Class Action Lawsuit
The National Association of Realtors is involved in a class action lawsuit for engaging in anticompetitive practices with several large real estate brokerages, resulting in inflated broker commissions.
The proposed settlement agreement worth over $980 million includes payments from National Association of Realtors and HomeServices America, as well as industry reforms to increase transparency and fairness in commissions.
The final approval hearing is scheduled for November 26, 2024, and eligible class members can file claims until May 9, 2025.
This lawsuit was initially brought by home sellers in Missouri who felt that the buyer’s agent was overpaid, and that NAR’s code of ethics, MLS Handbook, and corporate practices contributed to the inflation of commission costs.
In October 2023, a jury held the defendants liable for $1.78 billion in damages, with two brokerage defendants settling prior to trial.
As of October 2024, the National Association of Realtors has already implemented reforms that allow parties involved in buying or selling a home to negotiate commission rates.
This lawsuit marks a significant change in the real estate industry and provides opportunities for home sellers to recover some of their money from inflated commissions.
Through the efforts of those involved in the class action, future buyers and sellers will have more negotiating flexibility when it comes to real estate commissions.
This case highlights the power of individuals coming together to challenge unfair practices and create positive change in an industry.
If you have been affected by high real estate commissions, don’t hesitate – join the class action lawsuit today.
Remember, you have until May 2025 to file your claim. Don’t miss out on your chance to be part of this historic settlement.
Post Settlement Funding for National Association of Realtors Class Action
Attorneys involved in the National Association of Realtors class action lawsuit are currently in a waiting period to receive their attorney fees.
Fortunately, attorneys are eligible right now for post settlement funding, offering essential financial relief during this interim phase. This funding option is beneficial, as it helps maintain cash flow and supports operational expenses, allowing attorneys to continue their practice without financial strain.
By bridging the gap between settlement agreement and fee distribution, post-settlement funding ensures that legal professionals can focus on their clients and cases, rather than financial concerns, making it a valuable resource for those awaiting their well-deserved attorney fees.
Post-settlement advances from Balanced Bridge are much cheaper than pre-settlement options and require less paperwork and qualification compared to many other legal funding products. We generally do not need to see personal credit scores or financial statements from the firm. We need documentation of the settlement and the contingency fee owed in order to proceed with any advances.
Balanced Bridge Funding offers post settlement funding to plaintiff attorneys representing clients in the National Association of Realtors Class Action Lawsuit.
If you are an attorney and you are interested in learning more about post settlement funding for NAR lawsuits, please contact one of our financial specialists to learn more or apply for post settlement funding for attorneys.
To talk to one of our legal funding specialists about getting help managing your law firm cash flow, please call (267) 457-4540 or email info@balancedbridge.com. To apply online, simply click here and fill out our quick application form.
About the Authors
Balanced Bridge Funding offers legal funding solutions for plaintiffs, plaintiff attorneys,
attorneys, and law firms.
To talk to one of our legal funding specialists about getting help managing your law firm cash flow, please call (267) 457-4540 or email info@balancedbridge.com. To apply online, simply click here and fill out our quick application form.
