Key facts
- The Eighth Circuit Court of Appeals upheld a settlement resolving antitrust claims against real estate brokerages over agent commissions.
- The settlement includes $418 million from the National Association of Realtors, $250 million from HomeServices of America, and $333 million in legal fees.
- The court rejected objections that the settlement was unfair or procedurally defective.
- The NAR agreed to revamp rules governing the splitting of agent commissions as part of the settlement.
- The ruling affirms changes to commission practices that were previously challenged.
The Eighth Circuit Court of Appeals has upheld a more than $1 billion settlement resolving antitrust claims that real estate brokerages conspired to inflate agents' commissions. The ruling rejects objections from home buyers and sellers who argued their claims should not have been released as part of the agreement.
The appeals court stated that a federal district judge did not abuse his discretion in finding that conflicts of interest between buyers and sellers were not severe enough to undermine the settlement's fairness. Circuit Judge Lavenski Smith wrote for the panel that changes to how brokerages negotiate, allocate, and disclose commissions will benefit the entire class.
This decision affirms the settlement approved in November 2024 by U.S. District Judge Stephen Bough in Kansas City, Missouri. The settlement includes $418 million from the National Association of Realtors, $250 million from Berkshire Hathaway's HomeServices of America, and $333 million in legal fees. As part of the agreement, the NAR will revamp rules governing the splitting of agent commissions, which previously hovered around 5% to 6% and were seen by many as too high.
The settlement provided some financial relief after a Missouri jury in October 2023 ordered the NAR, HomeServices, and Keller Williams to pay $1.78 billion to home sellers who claimed they were overcharged. Other brokerages also joined the settlement. Berkshire Hathaway Energy, the parent of HomeServices, is still facing a separate class action lawsuit.