– A copycat commission lawsuit was filed in Nevada in January, initially naming Realtor associations and MLSs as defendants.
– The lawsuit has now been amended to include 15 brokerages as defendants.
– The focus of the lawsuit remains on NAR’s Participation Rule, which requires listing brokers to offer compensation to buyer’s brokers.
– The newly named brokerage defendants are accused of furthering this allegedly anti-competitive policy.
– The complaint alleges that the brokerage defendants enforce anti-competition rules, enriching themselves at the expense of Nevada homeowners.
– A spokesperson for Douglas Elliman did not comment on the amended complaint, and other defendants did not respond to requests for comment.
Nevada’s unusual commission lawsuit is no longer so unusual. When the copycat commission suit was initially filed in early January by Nevada home seller Nathaniel Whaley, the complaint named just Realtor associations and MLSs as defendants, making it stand out from the spate of other commission suits.
But all of that changed on Thursday, when Whaley’s counsel filed an amended complaint naming 15 brokerages as defendants.
Jason Mitchell Group, Opendoor, eXp Realty, Berkshire Hathaway HomeServices Nevada Properties, Simply Vegas, Urban Nest Realty, Luxury Homes of Las Vegas, Huntington and Willis, Keller Williams Southern Nevada, Keller Williams VIP, Keller Williams Realty Las Vegas, Keller Williams Realty The Marketplace, Engel & Völkers Lake Tahoe, Douglas Elliman of Nevada, and Redfin, join National Association of Realtors, Las Vegas Realtors, Nevada Realtors, Sierra Nevada Realty, Incline Village Realtors, Elko County Realtors, Mesquite Real Estate Association and Northern Nevada Regional MLS as defendants.
What remains unchanged is the central focus of the lawsuit — NAR’s Participation Rule which requires listing brokers to make a blanket offer of compensation to buyer’s brokers in order to list a property on an MLS.
Of the newly named brokerage defendants, the complaint states that they further this allegedly anti-competitive policy “by requiring and/or encourage their broker, franchisees, and agents to join one of the local NAR associations, participate in the MLS, and comply with the associated MLS rules.”
“The Brokerage Defendants also serve an essential role in the conspiracy by executing the conspiracy’s objectives on the ground,” the complaint states. “In the day-to-day transactions involving the sale of Nevada homes and the payment of commissions to seller and buyer brokers, the Brokerage Defendants implemented and enforced anti-competition rules. These actions enrich Brokerage Defendants and their co-conspirators at the expense of Nevada homeowners.”
A spokesperson for Douglas Elliman did not wish to comment on the amended complaint, and the other newly named defendants did not return a request for comment.
Property Chomp’s Take:
In recent news, the state of Nevada has been at the center of an unusual commission lawsuit. Initially filed by Nevada home seller Nathaniel Whaley, the lawsuit targeted Realtor associations and MLSs as defendants. However, a recent development has seen 15 brokerages, including well-known names like Jason Mitchell Group, Opendoor, eXp Realty, and Berkshire Hathaway HomeServices Nevada Properties, being added as defendants.
The lawsuit revolves around the National Association of Realtors’ (NAR) Participation Rule, which requires listing brokers to offer compensation to buyer’s brokers in order to list a property on an MLS. This rule has been criticized as anti-competitive, and the complaint alleges that the newly named brokerage defendants actively support and enforce this policy.
According to the complaint, these brokerages play a significant role in implementing and enforcing the anti-competition rules. By requiring their brokers, franchisees, and agents to join local NAR associations, participate in MLSs, and comply with associated rules, they allegedly contribute to the enrichment of themselves and their co-conspirators at the expense of Nevada homeowners.
The addition of brokerages as defendants in this lawsuit highlights the widespread impact of the NAR’s Participation Rule on the real estate industry. It raises questions about the fairness and competitiveness of the system, as well as the potential financial implications for homeowners.
While the amended complaint names these brokerages as defendants, it is important to note that they have not yet commented on the matter. It remains to be seen how they will respond and defend themselves against the allegations.
In conclusion, the use of