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More bad news for National Association of REALTORS (NAR). In a recent landmark decision, the U.S. Court of Appeals for the Ninth Circuit in San Francisco has overturned a lower court ruling, thereby reigniting Top Agent Network’s (TAN) lawsuit against the National Association of REALTORS (NAR). The lawsuit alleges that the NAR violated antitrust and unfair competition laws. This decision is sure to make waves in the real estate industry and, potentially, change the playing field for real estate professionals across the nation. Here’s what you need to know. 


Top Agent Network (TAN) is a private network of top-performing real estate agents. TAN alleges that NAR, a powerful entity representing more than a million members involved in all aspects of the residential and commercial real estate industries, engaged in anticompetitive practices that hindered TAN’s growth and market position. At the heart of the dispute is NAR’s Multiple Listing Service (MLS) policy, which TAN claims is monopolistic and discourages innovation and competition.  

The Lower Court’s Stance  

The lower court initially dismissed TAN’s lawsuit, suggesting that NAR’s policies did not explicitly harm competition or create an unfair competitive advantage. This decision seemed to solidify NAR’s position and indicated to many that established industry players would continue to dominate without significant legal challenges.  

The Ninth Circuit’s Decision  

Contrary to the lower court’s perspective, the Ninth Circuit found sufficient merit in TAN’s claims to reinstate the lawsuit. The Court of Appeals did not necessarily side with TAN but found that the allegations were substantial enough to warrant a more in-depth examination in a trial setting.   

Key arguments included: 

  1. Antitrust Violations: The Ninth Circuit found plausible TAN’s claims that NAR’s MLS policy stifled competition and created barriers for new entrants.
  2. Unfair Competition: The court also deemed it worth investigating whether NAR’s practices gave it an undue competitive edge over other real estate networks and platforms.

Implications for the Real Estate Industry  

Should TAN win in the subsequent trial, the ramifications for the real estate industry could be significant:  

  1. Redefining MLS Policies: A verdict against NAR might force a reevaluation of its MLS policies, possibly leveling the playing field for emerging real estate platforms.
  2. Stimulating Innovation: A more open market might encourage tech innovation in real estate, paving the way for new tools, platforms, and services that benefit both agents and consumers.
  3. Consumer Choice: A shift in industry dynamics might offer consumers more choices and potentially better deals when buying or selling homes.

The Ninth Circuit’s decision to reinstate the lawsuit is just the beginning. The case will now move to trial, where a detailed examination of the allegations will occur. Regardless of the trial’s outcome, the decision underscores the evolving nature of the real estate industry and the increasing scrutiny of longstanding practices.  

Both industry players and consumers should keep a close watch on this lawsuit’s progress. Its outcome may very well shape the future of real estate transactions in the U.S., signaling a new era of competition, innovation, and consumer empowerment.