Real estate commission lawsuits, including NAR: what they say about agent fees
Real estate agent commissions are the fees paid to the agents and brokers who help people buy and sell homes. Class action lawsuits claim that brokerages and the National Association of Realtors (NAR) worked together to keep these fees higher than they would otherwise be. These are allegations, and the brokerages and NAR may dispute them. This page lists each lawsuit, what it alleges, and where it stands.
Claims closed
The deadline to file a claim has passed for these settlements.
- Keller Williams & RE/MAX Commission settlementKeller Williams conspired with brokers to inflate buyer-agent commissions, driving up the prices home buyers paid for homes.
- National Association of Realtors Commission settlementHome sellers accuse Realtors of an antitrust scheme inflating broker fees by requiring sellers to pay buyer agent commissions
What is real estate commission?
When a home sells in the US, the seller's agent and the buyer's agent are typically paid a commission, a percentage of the sale price. For years, in many sales the seller paid both agents: the listing broker offered part of its commission to whichever broker brought the buyer, and that offer was often shared through a local listing database.
Brokerages say this arrangement helps homes reach more buyers and lets buyers get representation without paying an agent directly. The lawsuits see it differently.
The National Association of Realtors commission lawsuit is brought by home sellers. They claim that rules requiring sellers to offer buyer-agent commissions amount to an antitrust scheme, meaning an agreement among competitors that limits competition, and that this inflated the fees sellers paid. The Keller Williams and RE/MAX commission case claims Keller Williams and RE/MAX conspired with other brokers to inflate buyer-agent commissions, and says this drove up the prices home buyers paid.
These claims rest on federal antitrust law. The FTC's guide to the antitrust laws explains that these laws are meant to protect competition, and that agreements among competitors to fix prices or restrain trade can be illegal. The Department of Justice's Antitrust Division enforces these laws at the federal level.
Some cases of this kind end without paying anyone. The list above shows where each case stands.