Key Takeaways:
– Shauntell Burton filed a federal antitrust lawsuit in South Carolina against the National Association of Realtors (NAR) and Keller Williams, alleging collusion to inflate agent commission rates.
– The lawsuit is relatively small compared to others recently filed, with Keller Williams being the only corporate brokerage named and Burton being the only plaintiff.
– The lawsuit focuses on NAR’s Clear Cooperation policy, which requires agents to offer compensation to the buyer’s broker in order to list a property on the MLS.
– Burton is seeking class-action status for all home sellers in South Carolina who have sold a home on a NAR-affiliated MLS with a Keller Williams agent since November 2019.
– The complaint demands a jury trial, damages, and for NAR to end its Clear Cooperation policy.
– NAR is reviewing the filing and will respond in court, while Keller Williams did not comment and the plaintiff’s attorneys did not respond to a request for comment.
HousingWire:
Another day, another commission lawsuit — this time in South Carolina. On Monday, plaintiff Shauntell Burton filed a federal antitrust lawsuit in the U.S. District Court in South Carolina, alleging that the National Association of Realtors (NAR) and Keller Williams colluded to artificially inflate agent commission rates, increasing costs for home sellers.
Compared to other lawsuits filed in recent weeks and the Moehrl, Nosalek and Sitzer/Burnett suits, the Burton lawsuit is relatively small, as Keller Williams is the only corporate brokerage named in the suit and Burton is the only plaintiff.
Similar to the other commission lawsuits, the 107-page complaint identifies NAR’s Clear Cooperation policy as the cornerstone of the alleged conspiracy. The policy requires agents to provide a blanket offer of compensation to the buyer’s broker in order to list a property on the MLS.
“The effect of these rules is not simply that the seller must pay the buyer broker’s compensation,” the complaint states. “These rules effectively take the compensation structure out of the view of the buyers and sellers, masking who pays the buyer broker’s compensation.
“Indeed, a buyer broker may not even present an offer to a seller that is conditional on the seller reducing the buyer broker commission.”
Like other plaintiffs, Burton is seeking class-action status for all home sellers in South Carolina who have sold a home on a NAR-affiliated MLS with a Keller Williams agent since November 2019.
Burton sold her house with the help of a local Keller Williams agent in Spartanburg, South Carolina, in September 2023. According to the complaint, Burton paid the buyer’s broker a 2.5% commission and the listing broker a 3.5% commission.
The complaint demands a jury trial, a currently unknown amount of damages and for NAR to end its Clear Cooperation policy.
“The cooperative compensation practice makes efficient, transparent, and accessible marketplaces possible,” Mantill Williams, NAR’s vice president of communications, wrote in an email. “Sellers can sell their home for more and have their home seen by more buyers while buyers have more choices of homes and can afford representation. The National Association of REALTORS® is reviewing this new filing and will respond to it in court.”
Keller Williams did not wish to comment on the new filing and attorneys for the plaintiff did not return a request for comment.
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Property Chomp’s Take:
So, let’s talk about the latest commission lawsuit making headlines in South Carolina. It seems like these lawsuits just keep coming, and this time, it involves the National Association of Realtors (NAR) and Keller Williams. According to plaintiff Shauntell Burton, these two entities colluded to artificially inflate agent commission rates, resulting in increased costs for home sellers.
Now, compared to other lawsuits we’ve seen recently, this one is relatively small. Keller Williams is the only corporate brokerage named in the suit, and Burton is the sole plaintiff. It’s worth noting that the lawsuit is just one in a series of legal actions filed against NAR, including the Moehrl, Nosalek, and Sitzer/Burnett suits.
So, what’s the basis of this lawsuit? Well, like the others, it centers around NAR’s Clear Cooperation policy. This policy requires agents to provide a blanket offer of compensation to the buyer’s broker in order to list a property on the MLS. According to the complaint, these rules effectively hide the compensation structure from buyers and sellers, making it unclear who is responsible for paying the buyer broker’s commission. In fact, the complaint alleges that a buyer broker may not even present an offer to a seller if it’s conditional on reducing the buyer broker commission.
Burton is seeking class-action status for all home sellers in South Carolina who have sold a home on an NAR-affiliated MLS with a Keller Williams agent since November 2019. She sold her house in Spartanburg, South Carolina, with the help of a local Keller Williams agent in September 2023. Burton claims to have paid the buyer’s broker a 2.5% commission and the listing broker a 3.5% commission.
As for the outcome she’s seeking, Burton is demanding a jury trial, an undisclosed amount of damages, and for NAR to end its Clear Cooperation policy. NAR, on the other hand, believes that the cooperative compensation practice is essential for efficient and transparent marketplaces. They argue that sellers benefit from selling their homes for more and reaching a larger pool of buyers, while buyers have more choices and can afford representation. NAR has stated that they are reviewing the new filing and will respond to it in court.
Keller Williams, meanwhile, has chosen not to comment on the lawsuit, and the plaintiff’s attorneys have not responded to requests for comment.
It’s clear that these commission lawsuits are causing quite a stir in the real estate industry. As each new case emerges, it remains to be seen how they will impact the way commissions are structured and whether any changes will be made to the policies and practices of organizations like NAR. Only time will tell how this particular lawsuit will play out in court and what implications it may have for home sellers in South Carolina and beyond.
