A commission lawsuit is filed in Arizona. But NAR isn’t the target

Key Takeaways:

– Joseph Masiello, an Arizona resident and home seller, has filed a lawsuit accusing several real estate companies of colluding to inflate real estate agent commissions.
– The lawsuit targets the National Association of Realtors’ Participation Rule, which requires listing brokers to offer compensation to the buyer’s broker in order to list a property on a Realtor-affiliated MLS.
– The suit does not name NAR as a defendant but lists the state’s largest Realtor organizations and several brokerage firms as defendants.
– The complaint argues that local Realtor organizations participate in the conspiracy by adopting and enforcing rules similar to those of NAR.
– The lawsuit seeks class action status for all individuals who used any brokerage defendant to list and sell a home on an Arizona MLS and paid a buyer broker commission between Jan. 5, 2020, and the present.
– The plaintiffs are seeking treble damages, injunctive relief, and a jury trial.
– The defendants have not yet commented on the lawsuit.

HousingWire:

The wave of commission lawsuits have arrived in Arizona. In a copycat suit filed last Friday in U.S. District Court in Arizona, Joseph Masiello, an Arizona resident and home seller, accuses several real estate companies of colluding to artificially inflate real estate agent commissions.

Masiello sold a home on an Arizona MLS through HomeSmart “in or about October 2021.” According to the filing, Masiello was “required to pay a 2% commission ($8,200) to the seller broker and a 2.5% commission ($10,250) to the buyer broker.”

Like the other commission lawsuits, the Masiello suit takes aim at the National Association of Realtors’ Participation Rule, which requires listing brokers to make a blanket offer of compensation to the buyer’s broker in order to list a property on a Realtor-affiliated MLS.

“This archaic commission structure has remained insulated from market forces for almost 30 years because of a long-running conspiracy among Defendants to implement and enforce anticompetitive restraints in the residential real estate market,” the complaint reads. “No pro-competitive justification exists for Defendants’ conspiracy, which functions to perpetuate inflated commissions to the detriment of Arizona homeowners. Even if some pro-competitive benefit did come from Defendants’ conspiracy, that alleged benefit would be substantially outweighed by the conspiracy’s anticompetitive effects and would therefore not be justified.”

Though the suit takes aim at NAR’s Participation Rule, it does not name NAR as a defendant. Instead the suit lists the state’s largest Realtor organizations, including Arizona Association of Realtors, Phoenix Association of Realtors, Scottsdale Area Association of Realtors, and West and Southeast Realtors of the Valley Incorporated, as well as several local and national brokerage firms, including, HomeSmart, My Home Group, Realty One Group Arizona, West USA Realty, Hague Partners Holdings, Realty Executives, Arizona Best Real Estate, North&Company, Silverleaf Realty, Walty Dailey Local Luxury, Christie’s International Real Estate, Brokery, Roy H Long Realty Company, and Tierra Antigua Realty.

The complaint argues that the local Realtor organizations “participate in and further the conspiracy by agreeing to adopt, implementing, and enforcing rules in Arizona identical to those promulgated by the NAR, including through their control of the Arizona MLSs.”

Similar to all of the other copycat suits filed after the Sitzer/Burnett jury verdict in late Oct. 2023, the Masiello suit is seeking class action status for all persons who used any brokerage defendant to list and sell a home on an Arizona MLS and paid a buyer broker commission between Jan. 5, 2020, and the present.

The plaintiffs are also seeking treble damages of an amount to be determined at trial or by the court, injunctive relief preventing the defendants from engaging in what the plaintiff believes is “unlawful” behavior, and a jury trial.

The defendants did not immediately return a request for comment.

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Property Chomp’s Take:

is a widely used element in HTML that is used to divide sections or content on a webpage. It is a fundamental building block for creating the structure and layout of a webpage. In this article, we will discuss the recent wave of commission lawsuits in Arizona and how it relates to the use of

in web development.

The recent commission lawsuit filed in Arizona accuses several real estate companies of colluding to artificially inflate real estate agent commissions. The lawsuit takes aim at the National Association of Realtors’ Participation Rule, which requires listing brokers to make a blanket offer of compensation to the buyer’s broker in order to list a property on a Realtor-affiliated MLS. However, the lawsuit does not name NAR as a defendant, but rather lists the state’s largest Realtor organizations and several local and national brokerage firms as defendants.

Now, you might be wondering, what does this have to do with

? Well,

is an HTML element that is commonly used to create sections or containers on a webpage. It allows web developers to group related content together and apply styling or formatting to that specific section. In the case of the commission lawsuit, the use of

is not directly related to the lawsuit itself, but it highlights the importance of proper organization and structuring of content on a webpage.

In web development, using

elements can help improve the readability and maintainability of the code. By dividing the content into smaller sections, it becomes easier to manage and make changes to specific parts of the webpage. Additionally,

elements can be styled using CSS to achieve the desired layout and visual presentation.

The lawsuit’s aim to seek class action status for all persons who used any brokerage defendant to list and sell a home on an Arizona MLS and paid a buyer broker commission further emphasizes the need for clear and organized web development practices. Just as the lawsuit seeks to bring together affected individuals as a class, using

elements can bring together related content and create a cohesive user experience on a webpage.

In conclusion, the recent commission lawsuit in Arizona highlights the importance of proper organization and structuring of content on a webpage. While

itself is not directly involved in the lawsuit, it serves as a reminder of the fundamental role it plays in web development. By using

elements, web developers can create well-organized and visually appealing webpages that enhance the user experience.

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