The National Association of Realtors has agreed to settle litigation that accused the real estate group of artificially inflating real estate commissions, a move that could dramatically change how much consumers pay during real estate transactions.
The real estate group, which represents 1.5 million real estate agents around the country, said it will pay $418 million over four years to settle several cases, along with agreements to change the rules that plaintiffs alleged supported 5 to 6 percent commissions paid by home sellers. The association said it continues to deny wrongdoing.
“Ultimately, continuing to litigate would have hurt members and their small businesses,” said Nykia Wright, interim CEO of NAR. “While there could be no perfect outcome, this agreement is the best outcome we could achieve in the circumstances. It provides a path forward for our industry, which makes up nearly one fifth of the American economy, and NAR.”
The agreement must be approved by a federal judge before it can take effect.
This a developing story and will be updated.
