National Association of Realtors and Brokerages Face $1.8 Billion Verdict in Commission Conspiracy Lawsuit, Potentially Transforming Industry Practices

Jury finds National Association of Realtors and prominent real estate brokerages guilty of keeping home sale commissions artificially high, escalating costs for home sellers and potentially reshaping future commission structures.

A jury in Kansas City this week found that the National Association of Realtors and a number of real estate brokerages conspired to keep home sale commissions artificially high. The defendants, who have pledged to appeal, face nearly $1.8 billion in damages.
The lawsuit challenges the practice of 'coupled' commissions in which a seller and their agent are obligated to split the commission with the buyer's agent in order to list a property on the Multiple Listing Service (MLS).
If the current commission structure changes, it could lead to potential discrimination with agents choosing to work in specific neighborhoods or price points, or with certain types of customers.
The National Association of Realtors and several real estate brokerages are facing a new class-action lawsuit, this time from three different home sellers. The suit focuses on an NAR rule that obligates home sellers to offer to pay the commission for the agent representing the buyer.
Redfin CEO Glenn Kelman believes that decoupling buyer and seller commissions could create more competition in the market, potentially leading to more competitive house prices and the emergence of technology and platforms to support buyers who forgo a traditional agent.