On June 30, 2023, MLS PIN settled a restraint of trade lawsuit with plaintiffs in the Nosalek case. As part of the settlement, MLS PIN agreed to pay $3 million, overhaul its policies, and cooperate against the remaining real estate franchisors named in the lawsuit, which include Anywhere (formerly Realogy), RE/MAX, Keller Williams, and HomeServices of America. The settlement is significant as it represents a turning point in the real estate industry’s battle over commissions and buyer-broker compensation.
The Nosalek case has been ongoing for several years and centers around allegations that MLS PIN conspired with other real estate companies to inflate commissions paid to buyer brokers. The case has drawn attention from industry experts and has been closely watched by real estate professionals. The settlement between MLS PIN and the plaintiffs is a significant development in the case and could have wide-ranging implications for the real estate industry as a whole.
One interesting aspect of the settlement is that the plaintiffs have indicated that they will use the $3 million to fund the ongoing lawsuit against the real estate franchisors. While MLS PIN has settled, the remaining defendants are larger and have deeper pockets. This means that the lawsuit is likely to continue, and the settlement with MLS PIN may be seen as a way to build momentum in the case and put pressure on the remaining defendants to settle.
In a recent Substack post, Rob Hahn a real estate industry consultant, wrote “if MLS PIN can go do a deal and hang the brokerages out to dry, then NAR can do the same. Brokerages now know that. How that impacts things moving forward remains to be seen.” Rob Hahn has been providing commentary and insights into the multiple class action lawsuits since they were filed. We recommend subscribing to his newsletter for industry insights…only $20 a month– to sign up for his newsletter Click Here
In conclusion, the settlement between MLS PIN and the plaintiffs in the Nosalek case is a significant development in the real estate industry’s battle over commissions and buyer-broker compensation. The settlement is likely to have implications for the industry as a whole, and it will be interesting to see how the remaining defendants respond. As the case continues to unfold, it is important for real estate professionals to stay informed about developments and understand how they may impact the industry.