Top Agent Network Drops Antitrust Suit Against National Association of Realtors

In a significant development, Top Agent Network, a real estate platform based in San Francisco, has decided to end its lawsuit against the influential National Association of Realtors (NAR), which accused the association of stifling competition in the real estate listing services market. The lawsuit claimed that NAR’s practices inflated costs for consumers. According to Reuters, the two parties announced in a joint court filing on Monday that Top Agent Network would dismiss its claims “for now.”

The legal battle began in 2020 when Top Agent Network, which operates a competing real estate listing service, filed a lawsuit in federal court in San Francisco. The complaint targeted NAR’s “clear cooperation policy,” which requires sellers to list homes through the association’s Multiple Listing Service (MLS). Top Agent Network argued that this rule limited their members’ ability to post properties on alternative platforms, constricting inventory and, in turn, driving up home prices.

Despite initially losing the case in 2021, the dispute gained new momentum when a federal appeals court revived the claims. The controversy centered around whether NAR’s policy violated antitrust laws by allegedly restricting competition.

Read more: Supreme Court Declines to Hear Realtors’ Appeal, DOJ Antitrust Probe Moves Forward

According to Reuters, in an updated court filing from October, Top Agent Network sought an injunction to block the controversial rule and demanded unspecified damages for the alleged loss of revenue due to these restrictions. The case had been set to proceed to jury selection in November, but the recent joint statement from both parties revealed that they reached an agreement to dismiss the lawsuit without prejudice. This means that the case could potentially be refiled in the future.

In a separate legal matter, the National Association of Realtors reached an agreement in October to overhaul some of its policies and settle a class action lawsuit for $418 million. This settlement aimed to resolve claims from home sellers who alleged that they had been overcharged for commissions. While the brokers involved in the settlement denied any wrongdoing, the resolution of this case further added to the association’s legal challenges.

As the NAR considers the future of the contested rule, the real estate industry remains keenly watching the developments, particularly as the sector grapples with increasing scrutiny over its pricing practices and listing regulations.

Source: Reuters