The National Association of Realtors (NAR) and the Department Of Justice:
After the lawsuit was filed, the NAR made a couple of statements with which the Department of Justice didn’t agree.
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NAR Claps Back at DOJ Settlement Withdrawal
An antitrust lawsuit against the National Association of REALTORS® (NAR) had been seemingly settled. Now, the Department of Justice (DOJ) has withdrawn their agreement.
A spokesperson from NAR called the withdrawal a “complete, unprecedented breach of agreement by the Department of Justice,” adding that the settlement had been negotiated and approved by the head of the Antitrust Division.
According to NAR, the association had already begun to implement the agreed-upon changes, which would repeal and modify certain anticompetitive rules, such as:
– Prohibiting MLSs that are affiliated with NAR from disclosing to prospective buyers the commission that the buyer broker will earn
– Allowing buyer brokers to misrepresent to buyers that a buyer broker’s services are free
– Enabling buyer brokers to filter MLS listings based on the level of buyer broker commissions offered
– Limiting access to the lockboxes that provide licensed brokers with access to homes for sale to brokers who work for an NAR-affiliated MLS. ……….
Read More – Source: RISMEDIA.com
Department of Justice | Office of Public Affairs | FOR IMMEDIATE RELEASE | Thursday, July 1, 2021
Justice Department Withdraws from Settlement with the National Association of Realtors
Today the Justice Department’s Antitrust Division filed a notice of withdrawal of consent to a proposed settlement with the National Association of Realtors (NAR). The department has also filed to voluntarily dismiss its complaint without prejudice. The department determined that the settlement will not adequately protect the department’s rights to investigate other conduct by NAR that could impact competition in the real estate market and may harm home sellers and home buyers. The department is taking this action to permit a broader investigation of NAR’s rules and conduct to proceed without restriction.
“The proposed settlement will not sufficiently protect the Antitrust Division’s ability to pursue future claims against NAR,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Real estate is central to the American economy and consumers pay billions of dollars in real estate commissions every year. We cannot be bound by a settlement that prevents our ability to protect competition in a market that profoundly affects Americans’ financial well-being.”
As the real estate industry’s leading trade association, NAR has rules and policies that affect millions of real estate brokers and agents and, in turn, impact millions of American home buyers and sellers, who, according to reported industry data, paid over $85 billion in residential real estate commissions last year. The department filed a complaint and proposed settlement on Nov. 19, 2020. The complaint alleged that NAR established and enforced certain rules and policies that illegally restrained competition in residential real estate services. The proposed settlement sought to remedy those illegal practices and encourage greater competition among realtors, but it also prevented the department from pursuing other antitrust claims relating to NAR’s rules.
Under a stipulation signed by the parties and entered by the court, the department has sole discretion to withdraw its consent to the proposed settlement. The proposed settlement may also be modified with consent from the department and from NAR. The department sought NAR’s agreement to modify the settlement to adequately protect and preserve the department’s rights to investigate and challenge additional conduct by NAR, but the department and NAR could not reach an agreement. Because the settlement resolved only some of the department’s concerns with NAR’s rules, this step ensures that the department can continue to enforce the antitrust laws in this important market.
Topic(s):
Antitrust
Component(s):
Antitrust Division
Source: https://www.justice.gov/opa/pr/justice-department-withdraws-settlement-national-association-realtors
Settlement Will Increase Competition to the Benefit of American Homeowners and Homebuyers and Allow for Innovation in Brokerage Markets
The Department of Justice today filed a civil lawsuit against the National Association of REALTORS® (NAR) alleging that NAR established and enforced illegal restraints on the ways that REALTORS® compete.
The Antitrust Division simultaneously filed a proposed settlement that requires NAR to repeal and modify its rules to provide greater transparency to home buyers about the commissions of brokers representing home buyers (buyer brokers), cease misrepresenting that buyer broker services are free, eliminate rules that prohibit filtering multiple listing services (MLS) listings based on the level of buyer broker commissions, and change its rules and policy which limit access to lockboxes to only NAR-affiliated real estate brokers. If approved, the settlement will enhance competition in the real estate market, resulting in more choice and better service for consumers.
“Buying a home is one of life’s biggest and most important financial decisions,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Home buyers and sellers should be aware of all the broker fees they are paying. Today’s settlement prevents traditional brokers from impeding competition — including by internet-based methods of home buying and selling — by providing greater transparency to consumers about broker fees. This will increase price competition among brokers and lead to better quality of services for American home buyers and sellers.”
According to the complaint, NAR’s anticompetitive rules, policies, and practices include: (i) prohibiting MLSs that are affiliated with NAR from disclosing to prospective buyers the commission that the buyer broker will earn; (ii) allowing buyer brokers to misrepresent to buyers that a buyer broker’s services are free; (iii) enabling buyer brokers to filter MLS listings based on the level of buyer broker commissions offered; and (iv) limiting access to the lockboxes that provide licensed brokers with access to homes for sale to brokers who work for a NAR-affiliated MLS. These NAR rules, policies, practices have been widely adopted by NAR-affiliated MLSs resulting in decreased competition among real estate brokers.
NAR is a trade association of more than 1.4 million-member REALTORS® who are engaged in residential real estate brokerages across the United States. NAR has over 1,400 local associations (called “Member Boards”) organized as MLSs through which REALTORS® share information about homes for sale in their communities. Among other activities, NAR establishes and enforces rules, policies, and practices that are adopted by the Member Boards and their affiliated MLSs.
The proposed settlement will be published in the Federal Register as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments regarding the proposed final judgment within 60 days of its publications to Chief, Office of Decree Enforcement and Compliance, Antitrust Division, U.S. Department of Justice, 950 Pennsylvania Ave., N.W., Washington, DC 20530. At the conclusion of the 60-day comment period, the court may enter the proposed final judgment upon a finding that it serves the public interest.
Updated November 19, 2020
Source: Office Of Public Affairs (U, S. Department of Justice)
DOJ Voices Rare Opinion In Civil Case Against Realtor Group
October 23, 2019: The Department of Justice is pushing back against the National Association of Realtors, officially responding to the group’s motion to dismiss the multiple antitrust cases currently lobbied against it.
The suits accuse the organization of colluding, inflating commissions, and anti-competitive behavior, largely due to its compensation rules, which require home sellers pay fees for both the listing agent and the buyer’s agent. Four major real estate brokerages, including RE/MAX and Keller Williams, are also named in the suits.
NAR moved to dismiss the cases back in May, stating that they misrepresent NAR’s rules, “which have long been recognized by the courts across the country as protecting consumers and creating competitive, efficient markets that benefit home buyers and sellers.” ………..
Read More – Source: The Forbes.com
