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NAR’s Settlement Approval: What’s Next?

A pivotal hearing took place to determine NAR’s settlement approval, resolving nationwide class action claims concerning broker commissions. This session served as the final stage for presenting arguments, addressing objections, and considering any input from the Department of Justice (DOJ).

Key Developments

Final Arguments and Objections: Members of the settlement class had the opportunity to either opt out or file objections before the objection deadline. Ahead of the hearing, NAR’s legal team and Plaintiffs submitted motions addressing these objections and advocating for settlement approval.

NAR General Counsel Lesley Muchow underscored the importance of this process, describing it as a routine step in class action settlements. Supporters of the settlement, including those who opted in, also voiced their positions in court.

DOJ Involvement: The DOJ, which retains the authority to file a “Statement of Interest” in any federal case of national interest, has previously expressed concerns over broker commissions. In a related case, Nosalek v. MLS PIN, the DOJ advocated for entirely banning offers of compensation.

NAR continues to defend the value of offers of compensation, highlighting their pro-consumer benefits, including expanding access to professional representation, reducing costs for buyers, and increasing homeownership opportunities. Furthermore, NAR President Kevin Sears highlights that most states, including Missouri, allow these offers under their laws.

The Impact of Settlement Approval

If approved, the settlement will:

  • Release over 1.4 million NAR members, Realtor associations, affiliated MLSs, and brokerages from liability.
  • Ensure compliance with mandatory practice changes implemented earlier this year.

NAR remains dedicated to supporting its members with resources, including the Consumer Guide series, to navigate these changes effectively.

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