Buyer Broker Commissions Go to Trial

by | Oct 16, 2023 | Buyer Commissions | 0 comments

 

On Monday, October 16, 2023, the Sitzer/Burnett lawsuit goes to trial. It’s expected to last about three weeks, with a verdict due by mid-November. The fundamental question is how buyer commissions will be paid in the future.

The plaintiffs are a group of home sellers from Missouri who are alleging that buyer agent commissions have remained artificially high because of the rules in place requiring home seller to offer compensation to the buyer’s broker.

While Anywhere and RE/MAX have settled their portion of the lawsuit, NAR, Keller Williams, and Home Services of America are going to trial.

KW and Home Services intend to show that they played no role in the activities relating to NAR’s Cooperative Compensation Rule. They also both deny that there was any conspiracy.

According to Real Estate News, “The industry is paying close attention to this case because of the wide range of outcomes if the plaintiffs prevail. The monetary damages could be zero — or mind-boggling sums that could cripple some defendants’ ability to do business.”

No matter what happens, you can probably expect the losing side to appeal. Stay tuned for more updates soon.

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