Partial settlement reached in class suit over house-sale fees

A defendant in an antitrust class-action lawsuit against the real estate industry has settled for a reported $83.5 million.

The suit, pending in U.S. District Court for the Western District of Missouri, alleges that rules set by the National Association of Realtors restrain competition by requiring home sellers to pay a 6 percent commission that is split between their own agent and that of the buyer.

According to a Sept. 5 court filing, the settlement resolves claims against Anywhere Real Estate Inc., the parent company of CENTURY 21, Coldwell Banker and other well-known names in real estate. The settlement includes claims against the company in a similar suit in the Northern District of Illinois.

The plaintiff class is represented by the Kansas City law firms of Ketchmark & McCreight, Boulware Law and Williams Dirks Dameron. Lead attorney Mike Ketchmark declined to comment on the specifics of the settlement, which is still subject to court approval. But he said the plaintiffs are looking forward to a trial against the remaining defendants, including the National Association of Realtors, which is scheduled to start Oct. 16 in Kansas City.

“Our belief is that it’s going to change the real estate industry,” Ketchmark said.

The suit alleges that compliance with the Realtors association rule is required for properties to be listed on the Multiple Listing Service, or MLS, which are regional databases of properties through which nearly all homes are sold.

The plaintiff class, which Judge Stephen Bough certified last year, includes those who bought homes listed on one of the four MLS in Missouri as far back as 2014. Ketchmark said the class includes approximately half a million buyers in Missouri and parts of Illinois and Kansas, with alleged damages of $4.7 billion.

In an emailed statement, a spokesman for Anywhere, formerly known as Realogy Holdings Corp., said the company was pleased to have resolved both suits.

“The path to obtain final approval and implement the settlement is a long one, and Anywhere has taken the first important step toward a resolution that not only releases the company but also our affiliated agents and franchisees,” the company said. “We believe the settlement will remove future uncertainty with respect to the upcoming trial, potential additional claims, and legal expense, enabling Anywhere to focus on and continue delivering what’s next for agents and franchisees. Given ongoing legal proceedings and confidentiality agreements between parties, we cannot comment further at this time.”

The remaining defendants include the Realtors association, as well as national real estate broker franchisors HomeServices of America Inc., Re/Max and Keller Williams Realty.

The terms of the settlement weren’t specified in court documents. The amount was first reported by the trade publication HousingWire, citing a lawyer in the Illinois case. Neither side has disputed the reported figure.

The case is Burnett v. National Association of Realtors et al., 4:19-cv-00332.