Our NAR at Work 3-20-2019

Hello all,

I am reaching out to provide an update on the class action lawsuit that was filed on March 6, 2019, in US District Court in Illinois against NAR, Realogy, Keller Williams, RE/Max and HomeServices of America. First, let me reiterate, we strongly believe that the lawsuit is baseless and we (and our members) will prevail.

The complaint centers around an allegation that just isn’t true. It asserts that NAR rules prohibit seller and buyer brokers from negotiating over the amount of commission that will be paid to the buyer broker. However, NAR’s Handbook on Multiple Listing Policy and the Code of Ethics and Standard of Practice both explicitly state that buyer and seller brokers can negotiate over commissions.

In addition, several state and federal courts have considered challenges to multiple listing services, and they have overwhelmingly concluded that MLSs benefit consumers because they encourage brokers to share listing information and cooperate when serving the interests of their clients. MLSs are inherently good for consumers, not bad for them. Nothing in this complaint calls this well-established doctrine into question.

We will keep you updated and let you know when NAR files a response to the complaint. In the meantime, I want to let you know that NAR has been fielding a number of media requests about the case. These include CNN, FOX News, and other high-profile top tier news organizations. Our strategy is to respond in a timely fashion to all media request as we strongly defend our industry. While we suspect the plaintiff is employing an aggressive media outreach strategy, know that NAR will be there every step of the way to counter any misinformation and to set the record straight. Please be cautious about discussing the case online and please direct all media inquiries to NAR’s VP of Media Communications, Mantill Williams (mwilliams@realtors.org). If you have any questions about the legal allegations, please direct those to Lesley Muchow (lmuchow@realtors.org). 

Please note, while we believe strongly that the lawsuit is baseless and we will prevail, still class action litigation is a very serious and expensive matter. Thank you for your support as we move forward with a winning strategy.

Thanks,
Katie
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Katie Johnson 
General Counsel & Chief Member Experience Officer | Legal Affairs & Member Experience
NATIONAL ASSOCIATION OF REALTORS® | Chicago, IL
Office: 312.329.8372 

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