Class action attorneys will soon begin to notify members of the class in the Sitzer/Burnett class action lawsuit in Missouri. Notices are typically distributed through a range of communications, including emails and paid advertisements, and for this case are expected to begin Sept. 28.
The plaintiffs in this class action lawsuit are raising questions about how broker compensation is paid. Although the judge granted class certification in the case in April, in no way does that reflect on the actual or perceived merits of the plaintiffs’ claims. The ruling was procedural in what is yet to be a lengthy process and now allows others who have allegedly been affected to join the litigation as plaintiffs. As is common and expected, class action attorneys now begin to notify members of the class of their right to opt out, even before the validity of the case has been decided.
The message of the notices is: The Sitzer/Burnett v. NAR lawsuit may have an impact on the rights of anyone who recently sold a home in or near Missouri using a real estate agent and paid compensation to the buyer’s representative. The targets of these notices will be anyone who sold a home after April 29, 2014, via the MLSs in Columbia, Mo., Kansas City, Mo., Springfield, Mo., or St. Louis (and after April 29, 2015, in Kansas City, Kan., or in Illinois near St. Louis).
NAR continues to anticipate and prepare for moments like this. NAR also continues efforts to support members and associations in their messaging to consumers and communities via updates to the website and various stories that run in media.
Should you receive questions from consumers about broker services and commissions, NAR created a simple consumer website specific to these class action cases: realestatecommissionfacts.com.
The question in the case of Sitzer/Burnett v. NAR is why brokers representing home sellers often pay the compensation of brokers representing home buyers. This practice underpins local broker marketplaces where brokers compile centralized listings of all properties for sale and invite other brokers to cooperate in finding a buyer.
The reason this practice has worked so well for so long is because it provides the greatest economic benefits for both buyers and sellers; creates greater access and equity for first-time, low/middle-income and all buyers; and enables minority and small-business brokers to compete with larger brokers. From 2010 to 2020, local broker marketplaces enabled 6.3 million more people to realize the American dream of homeownership and helped homeowners build $8.2 trillion of housing wealth.
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