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Americans can claim one-time payment from $418 million realtor commission settlement but you must meet 3 criteria
The case may shake up the real estate industry - and your wallet
AMERICANS can claim payments as part of a major settlement from the National Association of Realtors and other real estate groups.
A variety of real estate companies were also involved in the suit, which is paying out up to $418 million.
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RE/MAX, Anywhere and Keller Williams were all named in the suit, which alleged that groups forced home sellers to pay commissions through anti-competitive agreements.
Agreements between companies can result in non-competition across an industry, which inflates prices and corporate profits.
These practices, allegedly used by the named real estate companies, may violate antitrust laws, which aim to protect consumers by preventing monopolies.
Plaintiffs in the case claimed that home sellers paid inflated commissions to brokers and real estate agents as a result.
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There are few details yet available on how much those impacted will be paid, according to Top Class Actions.
The deadline to file a claim is May 9.
If you were impacted and do not wish to be included in the settlement, the deadline for exclusions and opt-outs is April 13.
None of the companies involved in the suit admitted any wrongdoing.
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WHO QUALIFIES?
First, you must have sold a home on a multiple listing service, or MLS, in the time period covered by the suit.
Date ranges vary greatly based on region and listing service.
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The oldest complaints that could get payments are from 2014, with the newest being from early 2024.
The exact dates for your location can be found on the settlement website.
You must also have paid a commission to a real estate brokerage in connection with that sale.
These brokerages are common across the industry, but many have speculated that could change soon as a result of years of legal trouble facing real estate companies.
If you’re unsure whether the suit applies to you, the settlement administrator can be reached at 888-995-0207.
If you do not opt out or file a claim, you may lose your right to be able to sue any of the companies implicated over this issue in the future.
COMMISSION COSTS
Here's what Joy Dumandan, Consumer Editor with The U.S. Sun, has to say...
The dream of becoming a homeowner comes at a price.
There are unexpected costs associated with buying a home. It's best to make sure you save up for the added expenses.
The biggest upfront fees are closing costs.
These are fees you have to pay at your home closing when the title of the property is transferred from the seller to the buyer.
Commission earned varies from state to state.
Pricey payout
A recent $418 million settlement with the National Association of Realtors (NAR) is changing realtor commission fees.
The lawsuit claims the real estate industry conspired to keep agent commissions around 5% to 6% of the home's price.
The plaintiffs in the lawsuit argued that commission rates advertised on a multiple listing service, (MLS), a database agents use to find homes for clients, allowed realtors to prioritize homes with higher fees.
Home sellers may not have been aware that they could negotiate the compensation for a buyer's agent, which appears on the MLS, with the listing agent.
NAR admitted no wrongdoing but agreed to change its guidelines to make commission fees more transparent to consumers.
This could result in fees dropping by 1% to 2% for both home buyers and sellers.
Who pays the commission?
The seller pays the total commission at closing, but it's usually wrapped into the price of the home.
So, for example, if a commission is 6% on a $300,000 home, that would equal $18,000, which is split between the buyer's and seller's agents.
A buyer can offer to pay some of the real estate agent fees. This strategy can be used to convince a seller to accept a buyer's bid.
It's important to know your rights, which will be spelled out in your real estate agent contract when you sign to hire a realtor.
MORE CLASS ACTIONS
Several industries have been rocked by class action lawsuits recently.
A major security breach settlement reaching a total of $3.5 billion is paying out around half a million consumers.
Sovos, a financial software company, is paying each impacted individual up to $12,125.
Another data breach, this one from a prosthetic device company, is paying out up to $5,000.
The total set aside for the settlement is $2.9 million.
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Google is facing a new round of lawsuits amid concerns its ‘incognito’ mode is not as private as many thought.
Walmart is settling claims even without a proof of purchase.