Realtors Get Final Approval of $418 Million Antitrust Settlement

The National Association of Realtors gained final approval of its $418 million settlement with home sellers, marking a milestone in yearslong litigation over commission rules for real estate agents.

Judge Stephen R. Bough of the US District Court for the Western District of Missouri signed off on the deal at a Tuesday hearing after granting preliminary approval in April.

The settlement resolves claims in a case brought by home sellers related to broker commissions and releases NAR from liability in the litigation

Bough overruled some class members’ objections to the settlement, saying every member stands to gain from the deal, both in terms of money and injunctive relief.

“Each Class member could try to prove individual damages at trial and these amounts would all vary. But courts approve class settlements all the time that forgo these individual determinations,” Bough said.

The Justice Department’s antitrust division said in a Nov. 24 court filing that it continues to investigate policies and practices in the residential real-estate industry. A settlement will not limit the government’s ability to seek “greater relief for the conduct at issue here,” the department said.

The DOJ also raised concerns over a settlement provision requiring buyers and their brokers to enter written agreements before home tours, claiming it could harm buyers and limit how brokers compete for clients.

Steve Berman, managing partner for plaintiffs’ firm Hagens Berman, said in a statement to Bloomberg Law that the approved settlement will “pave the way for tens of billions in lower commissions for consumers so we are pleased this has gotten the green light.”

Home seller plaintiffs in 2019 sued NAR and various brokerages, alleging they enforced rules that illegally required home sellers to pay the broker representing the buyer of their homes an inflated amount.

A Missouri jury last year returned a $1.8 billion verdict against NAR, finding it colluded to inflate commissions.

NAR negotiated the settlement following the verdict, and agreed to change some of its business practices, including nixing requirements that listing brokers or sellers must make offers of compensation to cooperating brokers or other buyers.

NAR is represented by firms including Cooley LLP and ArentFox Schiff LLP. The plaintiffs are also represented by firms including Ketchmark & McCreight PC, Boulware Law LLC, and Cohen Milstein Sellers & Toll PLLC.

The case is Sitzer v. NAR, W.D. Mo., No. 4:19-cv-00332, 11/27/24.