Real Estate Brokerage Commission Antitrust Litigation

This landmark antitrust case has sent shockwaves through the real estate industry. The central claim, brought by groups of home sellers, is that the long-standing rules set by the National Association of Realtors (NAR) and enforced by major corporate brokerages constitute a conspiracy to keep agent commissions artificially high.

Specifically, the lawsuit challenges the "cooperative compensation rule," which requires listing brokers to offer compensation to the buyer's agent to list a property on the Multiple Listing Service (MLS). Plaintiffs argue this system stifles price competition and forces sellers to pay inflated commissions (typically 5-6% of the sale price, split between agents), regardless of the services rendered. A significant jury verdict against the defendants has already prompted major changes in the industry, with the potential to decouple agent commissions and fundamentally alter how real estate agents are paid.