Draft:Burnett et al v. National Association of Realtors et al

Burnett et al v. National Association of Realtors et al

On October 31, 2023, a federal civil jury found that the NAR had conspired to inflate commissions paid to home-buyers' real estate agents, and determined that NAR and its codefendants owed damages of almost US$1.8billion. The lawsuit, Burnett et al v. National Association of Realtors et al, was heard in the U.S. District Court for the Western District of Missouri in Kansas City, and involved allegations of violations of federal and state antitrust laws by the NAR, HomeServices of America, Keller Williams Realty, Anywhere Real Estate (parent of Coldwell Banker, Century 21 Real Estate, and Sotheby's International Realty) and Re/Max. Anywhere and Re/Max had previously settled their liability and agreed to pay lesser damages, leaving NAR, HomeServices and Keller Williams to defend the suit at trial. Upon announcement of the verdict and before final judgment was entered, NAR and HomeServices stated their intention to appeal, and Keller Williams was considering doing so. In March 2024, NAR agreed to settle for a reduction of damages to US$418million, eliminating its rules on commissions, and waiving its right to appeal. The settlement is expected to reduce real estate commissions, force some agents out of the industry, and lead to a decline in NAR’s membership.