$418 million lawsuit settlement with the National Assoc. of Realtors resolves nationwide claims from home sellers

 

WISCONSIN (CBS 58) --  On Friday, March 15, the National Association of Realtors (NAR) announced a $418-million-dollar settlement, ending legal claims from home sellers arguing current rules made them pay excessive fees.

If the settlement receives court approval, the agreement could change the way real estate agents are compensated, and the housing industry as we know it. 

In a Facebook post, NAR President Kevin Sears said the settlement "represents a pivotal moment for our association and our industry."

"I have full confidence in our ability to evolve once more to do what is needed to lead our members for the years to come," Sears continued in the video. 

Under terms of the agreement, NAR would change decades-old policies that helped set agent commissions and pay the hundreds of millions in damages over the next four years.

Among other changes, it would also slash the standard 6% sales commission for agents, so that commissions would be subject to more negotiations thus potentially lowering the cost for Americans who are buying and selling homes.

In a news release, NAR denied any wrongdoing.

“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers. It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals,” said Nykia Wright, Interim CEO of NAR.

The next step is for a federal judge to sign off on the settlement.

If that happens, changes will go into effect in mid-July of this year.