A Missouri jury made headlines on Tuesday by declaring the National Association of Realtors (NAR), HomeServices of America, and Keller Williams liable for almost $1.8 billion in damages. The jury found evidence of a conspiracy to inflate commissions within the real estate industry trade group.
The repercussions of this ruling could potentially lead to an injunction against commission sharing on multiple listing services (MLSs). Such a ban would significantly impact buyer-agent businesses.
“This outcome is a profound testament to the accountability of these companies,” said Michael Ketchmark, the lead attorney representing the plaintiffs in an interview with CNN.
The lawsuit specifically covers home sales that occurred between April 2015 and June 2022. The jury in Kansas City took only a few hours to reach their decision.
NAR President Tracey Kasper emphasized that the trial’s conclusion does not signify the end of the matter. Kasper emphasized, “We will contest the liability finding as we firmly believe that NAR rules prioritize consumer interests, encourage competitive pricing, and foster business competition.” Kasper’s statement can be found here. “Furthermore,” she added, “we will request the court to reduce the damages awarded by the jury.”
Kasper further argued that the current structure of local marketplaces benefits consumers and facilitates healthy competition.
According to housing policy analyst Jaret Seiberg, who spoke with CNN, the appeals process for this case could extend up to three years. It is likely that the losing party will seek a retrial.
On Tuesday, Ketchmark filed another class-action lawsuit accusing real estate companies including Douglas Elliman, Compass, and Redfin of violating antitrust laws.
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