Rejoice! NMR settlement receives final approval
(NAR) and the real estate industry as a whole have something to be thankful for this Thanksgiving. On Tuesday, U.S. District Court Judge Stephen Bough in Kansas City, Missouri granted final approval to NAR and the settlements they reached. and numerous MLSs and brokerages that have chosen to house NAR.
The approval comes despite a filing in which the DOJ disputed the settlement provisions before traveling to a home with an agent. The DOJ believes that buyer brokerage agreements have the potential to “restrict brokers' competition for customers.”
“Courts have found violations of antitrust laws in other proceedings and the ability to restrict competition for buyers among buyer brokers is very similar to previous restrictions between competitors,” the DOJ said in a statement of interest filed on Sunday.
The DOJ also noted in its filing that approval of the settlement “does not preclude any future enforcement action by the United States, and compliance with the proposed settlement or the new NMR regulations implementing that settlement does not provide any protection against such enforcement action.”
Despite these concerns, as well as information provided by eight individuals and five attorneys who had previously filed antitrust lawsuits, Bough gave final approval to the settlement.
While it is clear based on the DOJ's expression of interest that this saga will not end, Bough's decision marks the end of this chapter that began on March 15, 2024, when news of the NAR settlement broke.
The settlement, which requires NAR to pay $418 million and agree to changes in business practices, received initial approval. According to the surrounding class notices, the business practice changes, including mandatory buyer representation agreements, went into effect nationwide.
“This is an important moment for NMR members, home buyers and sellers, and the real estate industry,” said NMR President Kevin Sears. “As consumer champions, NMR members are working tirelessly to implement the changes in experience demanded by township and pastoral consumers during this transition. The principles of transparency, competition and choice underpin the settlement agreement and empower real estate professionals and consumers to negotiate services and compensation that work for them.”
At plaintiffs' motion, the decision was sent to class members for approval. By using several notification mechanisms, attorneys believe they can reach 99% of settlement class members.
As of last week, about 500,000 people had submitted claims to be part of the settlement, but eligible home sellers have until May 2025 to file claims. In contrast, 39 class members opted out of the settlement.
In addition to covering the organization itself, NAR's settlement also protects all brokers with less than $2 billion in sales in 2022 and all Realtor-affiliated MLSs. For firms that fall outside this range, they are allowed to be protected under the contract. According to the complaint, we chose to settle. These parties will pay an additional $30.6 million into the settlement fund.
In turn, America's HomeServices will enter the settlement fund set by the agreement it negotiated at the end of April.
In a statement sent to HousingWire on Tuesday, HomeServices of America said it is “pleased” that the settlement has received final court approval.
“We remain committed to supporting our people as they continue to provide exceptional service to customers and communities across the country,” said HSA Executive Vice President Chris Kelly. “Our local executives, agents and staff deserve great credit for their exceptional ability to meet the challenges of the past year.”
He continued: “Apart from legal and regulatory pressures, persistent market dynamics continue to impact buyers and sellers and require innovative solutions. As we look forward, HomeServices' full-service model positions us to meet the needs of today's consumers who see home ownership as the most tried and true way to create wealth. By focusing on solving these problems, we aim to deliver unparalleled value and opportunity for our customers and communities.”
This is the third round of commission claims that Bough has given final approval.
gave his final approval to the settlements he reached everywhere, and Keller Williams. , gave confirmations for the settlements he reached Compass , Real Broker ), At World Properties ), Douglas Elliman ), Redfin ), Engel and Völkers ($6.9 million), Realty ONE Group ($5 million), HomeSmart Holdings () and United Real Estate ) in claims.
This story will be updated with more information and commentary as it becomes available.
