Despite the Department of Justice's opposition, the antitrust settlement has been officially completed.

A recent lawsuit against the National Association of Realtors has finally come to a resolution on November 26th. Despite objections from the Department of Justice, a federal judge has approved changes to the National Association of Realtors' practices.

The Department of Justice had made a last-minute filing, stating that the proposed changes did not provide enough protection for consumers. The filing also mentioned that the changes did not exempt realtors from potential prosecution for antitrust violations. As an outside party to the lawsuit, the DOJ had recommended two provisions for the settlement, but unfortunately, neither of them were included in the final agreement.

According to the DOJ, one of the main concerns was the provision that required buyers and their brokers to enter into a written agreement before touring any homes. This raised concerns about potential antitrust violations, which could have been addressed by either removing the provision altogether or clarifying that the settlement did not provide any immunity or defense for the provision. However, the final settlement still includes this provision.

The NAR has always maintained that the standard 6% commission on transactions is negotiable. However, the settlement acknowledges that commission sharing between home-selling agents and home-buying agents is a violation of antitrust laws, and it artificially inflates commissions, putting sellers at a disadvantage.

To address this issue, the settlement has implemented changes such as eliminating the advertising of commission fees on specific listing sites and requiring a written buyer agreement that outlines the costs of commissions and the buyer's responsibility to pay if the seller refuses. This effectively eliminates the previous shared compensation model that could leave sellers responsible for both buyer and selling agent fees.

Initially, the settlement was set to be approved by a federal judge on November 26th, but the DOJ's filing on November 24th delayed the process. NAR President Kevin Sears has emphasized the importance of the settlement and the organization's commitment to being consumer champions. He states, "This is an important moment for NAR members, home buyers and sellers, and the real estate industry. As consumer champions, NAR's members have been diligently working to implement the required practice changes and guide consumers through this transition period."

It is unclear how the DOJ's objections will affect the settlement's outcome, leaving many realtors uncertain about the next steps. This lawsuit is just one example of the ongoing battle against antitrust violations, as seen in Michael Jordan's recent lawsuit against NASCAR. The real estate industry must continue to prioritize consumer protection and fair competition in the market.

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