The National Association of Realtors (NAR) recently secured final approval for a significant settlement addressing antitrust claims related to real estate commission structures. However, this development has not quelled all legal challenges within the industry. Notably, the Batton II lawsuit is expanding, and objections to the NAR settlement are emerging from legal scholars, including University at Buffalo law professor Tanya Monestier.
Expansion of the Batton II Lawsuit
On November 27, 2024, the Batton II case saw the addition of 22 homebuyers from 19 states, bringing the total number of plaintiffs to 32This lawsuit alleges that NAR and several major real estate brokerages conspired to inflate buyer agent commissions, thereby violating antitrust laws.The Batton II case is distinct from the recently approved NAR settlement and continues to progress independently through the legal system.
Objections from Legal Academia
In a related development, University at Buffalo law professor Tanya Monestier has raised significant concerns regarding the NAR settlement.As a member of the affected class, Monestier filed a comprehensive 132-page formal objection on October 28, 2024, arguing that the settlement fails to adequately address the issues it aims to resolve.She contends that the proposed changes are insufficient and that the settlement lacks effective enforcement mechanisms, potentially allowing existing problematic practices to persist.Monestier also criticizes the substantial attorney fees outlined in the settlement, suggesting they may not be justified given the outcomes achieved.
Implications for the Real Estate Industry
These ongoing legal challenges underscore the complexity of reforming commission structures within the real estate sector. The expansion of the Batton II lawsuit and the objections from legal experts like Professor Monestier highlight that, despite settlements, significant scrutiny and calls for more substantial reforms persist. The industry remains in a state of flux as it navigates these legal proceedings and their potential implications for future business practices.
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