DALTX Real EstateDALTX Real EstateDALTX Real Estate
  • Home
  • Guest Post
  • Agents
  • Contact Us
  • About
  • Advertise With Us
Reading: Dallas MLS One Area Impacted in Suit Against NAR, Major Broker Franchisors
Share
Font ResizerAa
DALTX Real EstateDALTX Real Estate
Font ResizerAa
  • Home
  • Guest Post
  • Agents
  • Contact Us
  • About
  • Advertise With Us
  • Home
  • Guest Post
  • Agents
  • Contact Us
  • About
  • Advertise With Us
Follow US
© DALTX. All Rights Reserved.
DALTX Real Estate > Dallas real estate news > Dallas MLS One Area Impacted in Suit Against NAR, Major Broker Franchisors
Dallas real estate news

Dallas MLS One Area Impacted in Suit Against NAR, Major Broker Franchisors

4 Min Read
SHARE

130821-F-EB935-051-e1552454126449

It was the shot heard round the real estate world, but if you’re not a Realtor, you may not have heard about it — a group of home sellers has filed suit against the National Association of REALTORS® and four major real estate broker franchisors.

Why? Because of buyer broker commissions and the requirement to use the Multiple Listing Service, or MLS.

The suit, filed last week in Chicago, claims that the NAR and top brokerages Realogy, HomeServices of America, RE/MAX, and Keller Williams Realty violated federal antitrust laws by requiring home sellers to pay a broker to represent the buyer of their homes and to pay for this service to the tune of at least a three percent commission.

“Defendants’ conspiracy has centered around NAR’s adoption and implementation of a rule that requires all brokers to make a blanket, non-negotiable offer of buyer broker compensation (the ‘Buyer Broker Commission Rule’) when listing a property on a Multiple Listing Service (‘MLS’),” the suit reads.

“Defendants and their co-conspirators collectively possess market power in local markets for real estate broker services through their control of the local MLS. An MLS is a database of properties listed for sale in a particular geographic region and the marketplace in which the vast majority of homes in the United States are sold.”

“Brokers must list a property for sale on an MLS to effectively market that property to prospective buyers, and in any event, are required to list all properties on the MLS if they are members of the MLS,” the suit continues. “The conspiracy has saddled home sellers with a cost that would be borne by the buyer in a competitive market.”

The word conspiracy is at the heart of the claim — with the defendants insisting that a commission for a buyer broker who has a “reduced” role in the age of readily available online listing sites for consumers is unfair.

“Defendants’ conspiracy has kept buyer broker commissions in the 2.5 to 3.0 percent range for many years despite the diminishing role of buyer brokers,” the suit said. “A majority of home buyers no longer locate prospective homes with the assistance of a broker, but rather independently through online services.”

“Buyer brokers increasingly have been retained after their client has already found the home the client wishes to buy. Despite their diminishing role, buyer brokers continue to receive 2.5 to 3.0 percent of the sales price due to Defendants’ conspiracy.”

Several MLS areas are named as being impacted by the class action suit, saying that the suit is on behalf of home sellers who paid a broker commission for the sale of residential real estate  in the last four years to several MLSs in what they termed the “Covered MLSs.” They include the MLSs in Austin, Dallas, San Antonio, and Houston.

The NAR has taken issue with the claims in the suit.

“The complaint is baseless and contains an abundance of false claims. The U.S. Courts have routinely found that Multiple Listing Services are pro-competitive and benefit consumers by creating great efficiencies in the home-buying and selling process,” said NAR VP of Communications Mantill Williams. “NAR looks forward to obtaining a similar precedent regarding this filing.”

This story is developing. Tomorrow, we’ll look closer at the reaction to the suit, and talk to one of the plaintiff’s lawyers.

ECF No. 1, Class Action Complaint 3.6.19 by Bethany Erickson on Scribd

Old Lake Highlands Retro Remodel Shines With Masterful Updates
Funky Cedar Crest Family Home To Fall In Love With
North Dallas Entertainer’s Home With Pool And Plano Schools For $445K
Inventory is Tight, So Buyers Are Going Full-Tilt Crazy
Make Room In Your Schedule For These Northeast Dallas Open Houses
TAGGED:buyer agentbuyer brokerCourtsDFW real estate newsMlsMLS lawsuitNational Association Of RealtorsNorth Texas Real Estate News
Share This Article
Facebook Email Copy Link Print
Previous Article Room To Roam Inside And Out With This Cedar Hill Home Surrounded By Nature
Next Article Chad Meadors Joins Halo Group
Popular News
Compass

Dallas Builders Association Thursday Lunch Panel on “Disruption!” Is Sold Out, But…

Robert DeLeon is Excited to Join The Monument Realty Family
“O” Alert: Devonshire Retreat With Pool, Spa, Koi Pond, and an Orchid Room
Jamie Adler Named Sales Leader of Dave Perry-Miller Lakewood/Lake Highlands Office
See How This Fantastic Oak Lawn Condo Up for Sale Has Evolved Over the Years
about us

DaltxRealEstate.com is the largest real estate blog and the only one in North Texas.

Links

  • Privacy Policy
  • Terms of Service
  • Contact Us
  • Paid Guest Post Submission

Categories

  • Wednesday WTF
  • East Dallas
  • Monday Morning Millionaire
  • Upon Closer Inspection

Get Involved

  • Advertise With Us
  • Write for Us: Submit Guest Post

Find Us on Socials

© DALTX. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?