In a groundbreaking development in the real estate industry, RE/MAX, one of the largest real estate brokerages, has reached a settlement agreement to resolve the Sitzer and Moehrl class action commission lawsuits. With a $55 million deal, this settlement marks a significant turning point that could have far-reaching consequences for the industry as a whole. This blog post will delve into the details of the settlement and its implications.
The Lawsuits: The Sitzer and Moehrl class action commission lawsuits were filed against the National Association of Realtors and the four largest national real estate broker franchisors, Anywhere (formerlyRealogy Holdings Corp.), HomeServices of America, Inc., RE/MAX Holdings, Inc., and Keller Williams Realty, Inc., challenging the way buyer broker commissions are handled. The plaintiffs argued that commission sharing inflates costs for sellers, thus violating the Sherman Act. These lawsuits sought to bring about changes in the industry’s practices and ensure fairer outcomes for homebuyers and sellers alike.
The Settlement: RE/MAX’s decision to settle these lawsuits for a staggering $55 million in addition to the Anywhere’s settlement of $83.5 million, demonstrates the seriousness of the allegations and its commitment to resolving the matter. The settlement encompasses both the Sitzer/Burnett and Moehrl cases, bringing relief to the parties involved.
Implications for the Industry: The settlement has sent shockwaves through the real estate industry, with industry leaders and experts anticipating broader consequences soon. The outcome of these lawsuits and subsequent settlements could potentially reshape the way commission structures are organized and implemented across the industry. It may lead to increased transparency, more consumer-centric practices, and heightened scrutiny of industry practices related to buyer broker commissions.
The Road Ahead: With the Sitzer and Moehrl class action commission lawsuits nearing trial, the real estate industry finds itself at a critical juncture. Industry stakeholders, including brokerages, agents, and associations, are beginning to assess the potential impact of these settlements on their operations. It is likely that conversations around commission structures, consumer protection measures, and industry regulations will gain momentum in the coming months.
Conclusion: RE/MAX and Anywhere’s settlement of the Sitzer and Moehrl class action commission lawsuits represents a significant development in the real estate industry. The $138.5 million settlement demonstrates the gravity of the allegations and sends a clear message that changes may be imminent. As the industry grapples with the aftermath of these lawsuits, it is essential for all stakeholders to engage in meaningful dialogue and work towards practices that prioritize fairness, transparency, and consumer protection.
Note: There is no word on whether Keller Williams Realty, Inc. Or HomeServices of America, Inc. Are considering settling or proceeding to trial however, the NAR has indicated that the organization will proceed to trial, without a settlement.
References:
- Inman News: RE/MAX settles bombshell commission lawsuits for $55M
- Real Estate News: RE/MAX makes $55 million deal to settle commission lawsuits
- Yahoo Finance: RE/MAX settles buyer broker commission lawsuits for $55 million
- Business Journals: RE/MAX, Anywhere Real Estate reach settlements in high-stakes lawsuits
- RISMedia: RE/MAX Settles Commission Lawsuits, With Industry Bracing for Change
- Real Trends: Judge certifies class in multibillion-dollar agent commission case