Key Points on California Commission Lawsuits
In light of the commission lawsuits filed in California we wanted to share some key points with you all and will keep you apprised of significant updates. Please feel free to share this with your agents as you deem appropriate:
- Following the jury verdict in Missouri on October 31st, several “copycat” class action antitrust lawsuits have been filed around the country by home sellers challenging NAR rules related to cooperative compensation offered by listing agents to buyer’s agents in the MLS.
- Four seller class action cases have been filed in federal courts in California.
- C.A.R. is named as a defendant in two of those cases in the Central District, Gael Fierro and Patrick Thurber v. NAR et al. and Andrea Freedlund v. Redfin Corp. et al.
- In the Fierro case, the plaintiffs have sued several local associations of REALTORS® in California, MLSs, and corporate brokerage defendants, in addition to NAR and C.A.R.
- In the Freedlund case, plaintiffs have named NAR, C.A.R. and Redfin as defendants. You can read about this on our media page here.
- Given that the litigation is ongoing, it’s not appropriate for C.A.R. to say more right now, especially because the case is in its early stages.
- C.A.R. has retained highly experienced antitrust defense counsel to defend C.A.R., and C.A.R. will be well prepared to present its arguments in court.
- In addition, C.A.R. is evaluating whether it is feasible to coordinate with the other defendants.
- REALTORS® should continue to have open and transparent discussions with clients about how they are paid, including the negotiability of real estate broker compensation, and how compensation is structured.
- Also, REALTORS® should continue to show clients just how much value they bring to a real estate transaction with their knowledge and expertise.
- See C.A.R.’s resources on Smart Zone for a list of 167 things REALTORS® do for their clients.
- Also available on Smart Zone are buyer agent resources, including legal guides, and educational resources for using the Buyer Representation and Broker Compensation Form, business and legal tools.