Update from NAR's General Counsel & Chief Member Experience Officer, Katie Johnson:
In May 2022, an Illinois federal court dismissed a class action lawsuit against NAR and four corporate defendants alleging that listing brokers compensating buyer brokers is a "conspiracy" in violation of the Sherman Antitrust Act and artificially inflates buyer costs leading to higher home prices. In May, the judge granted our motion to dismiss because plaintiffs were indirect purchasers of brokerage services and therefore were unable to adequately plead a claim under federal antitrust law.
Last week, the plaintiffs filed a new, amended complaint that makes all the same allegations but alleges that the defendants violated specific state laws (not federal laws). The new complaint does not further the plaintiff's argument, and we will move to dismiss it.
We will continue to make the case that the pro-competitive, pro-consumer local broker marketplaces serve the best interests of buyers and sellers. Sellers making offers of compensation to buyer brokers gives first-time, low/middle-income and all homebuyers a better shot at affording a home and professional representation to navigate this critical purchase. We are confident the court will dismiss this amended complaint.
Now is a good time to remind you of our ask of you. Now is the time to communicate to consumers the value of REALTORS and of the local broker marketplaces. We have a number of resources at competition.realtor that you can use to get started. Need a resource that explains why the current way brokers are compensated works in the best interest of consumers? Check out realestatecommissionfacts.com.
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