The deal, subject to court approval, could affect Americans’ cost to buy or sell homes.
The Chicago-based National Association of Realtors agreed Friday to a settlement that could affect Americans’ cost to buy or sell homes.
The association — resolving claims over broker commissions — intends to pay $418 million over four years and to implement rules that ensure agents’ commissions are negotiable.
The settlement, subject to court approval, would end litigation that last year brought a staggering $1.8 billion verdict against the association and could have been tripled under U.S. antitrust law.
Plaintiffs in the case alleged association rules for putting homes on various multiple listing services in effect fixed commissions at high rates and discouraged sellers from seeking better terms. In its settlement, the NAR did not admit wrongdoing.
Other litigation continues against the NAR, which has 1.5 million members and broad control over access to MLS systems. Plaintiffs said the settlement sets up a framework to resolve those disputes.
Broker commissions are paid by home sellers. The commissions typically are in the range of 5% to 6%, $20,000 or more on a $400,000 sale. When a buyer is represented by a Realtor, the agent usually agrees to split the commission with the seller’s agent.
Compensation offers have been listed on the MLS, but the settlement forbids that practice.
„For far too long, home sellers have faced a system recognized by many as blatantly unfair. Individual sellers often feel powerless to negotiate a better deal for themselves given the risk that offering lower commissions will cause brokers to steer buyers to other properties,” Robert Braun, a lawyer for the plaintiffs and partner at Cohen Milstein, said in a news release.
