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The National Association of Realtors’ antitrust case will be reopened

The National Association of Realtors (NAR) will become the subject of a Justice Department reopening of its case that will focus on home sales commissions.

The U.S. Court of Appeals for the District of Columbia reversed a 2023 lower court ruling on the Justice Department’s request for additional information from NAR. This decision gives the Department of Justice the green light to investigate the matter further.

The Department of Justice will reopen the case

The Department of Justice filed amicus briefs and statements of interest that “the United States enforces federal antitrust laws and has a significant interest in preventing anticompetitive conduct in the real estate industry. Over the past two decades, the United States has investigated and challenged several rules and National Association of Realtors (“NAR”) practices and regional multiple listing services.”

The reopening of the case is another blow to NAR after the most powerful real estate group agreed to pay nearly half a billion in a March 15 settlement agreement.

NAR will be shaken by the settlement which “is subject to court approval, makes clear that NAR continues to deny any wrongdoing in connection with the Multiple Listing Service (MLS) Cooperative Compensation Model Rule (MLS Model Rule) which was introduced in the 1990s in response to calls from consumer protection advocates for buyer representation.Under the terms of the settlement, NAR would pay $418 million over about four years.

Deputy Attorney General Jonathan Kanter of the Justice Department’s antitrust division will comment on the Washington court’s decision. He stated that “real estate commissions in the United States far exceed those of any other developed economy, and this decision restores the Antitrust Division’s ability to investigate potentially illegal conduct by NAR that could contribute to this problem.”

“Antitrust is committed to the fight to lower the costs of buying and selling a home. I would like to commend the Antitrust staff and our colleagues across the department for achieving this important achievement.”

NAR Interim CEO Nykia Wright said, “NAR is firmly focused on the future and driving this industry forward. We are committed to innovating and defining the next steps that will allow us to continue providing unparalleled value to American members and consumers.”

NAR hopes the Justice Department’s findings are fair and do not add to recent fines the entity has received as part of federal pressure on the real estate group.

Image: ideogram.

The National Association of Realtors antitrust case to be reopened appeared first on Due.

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