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If I Were You…I’d Listen to this Podcast about Residential Real Estate & Antitrust

 |  April 19, 2024

By: Molly Donovan & Aaron Gott (The Antitrust Attorney)

Recent settlement between the National Association of Realtors (NAR) and class action plaintiffs addressing a $1.8 billion verdict in Missouri for illegal collusion in the residential real estate industry prompts concerns about antitrust implications. This podcast offers practical advice for navigating these concerns.

The settlement stems from the Missouri case, which centered on NAR’s mandatory commission rule mandating home sellers to pay a non-negotiable commission to the buyer’s broker. Plaintiffs argued that this rule stifled competition for buy-side rates, leading to artificially inflated prices. Prior to the lawsuit, most brokerages adhered to this rule, creating a uniform operating environment.

Under the settlement terms, NAR has agreed to implement a new rule barring offers of buy-side compensation from being listed on the MLS (multiple listing service), the primary platform for home listings. Individual brokers can still pursue buy-side commissions, but only through off-MLS negotiations. Pending approval, this change will take effect in mid-July 2024…