The Sitzer | Burnett Commission Trial U.S. Real Estate Industry: The $1.78 Billion Verdict and Its Far-Reaching Consequences In a groundbreaking legal decision, a federal jury in Kansas City, Missouri, has held the National Association of Realtors (NAR) and several key residential brokerages, including Berkshire Hathaway affiliates, accountable for artificially inflating commissions on home sales. The jury's award of $1.78 billion in damages could escalate to over $5.3 billion under U.S. antitrust laws, marking a potential sea change in the real estate sector. The Backdrop of the Case The lawsuit was a class action initiated by sellers of over 260,000 homes in Missouri, Kansas, and Illinois between 2015 and 2022. These sellers challenged the commissions they were required to pay to buyers' brokers. The two-week... Read more
Category: Sitzer/Burnett
The Sitzer/Burnett lawsuit is a class-action case that alleged that some of the nation’s largest real estate companies, including the National Association of Realtors (NAR), Keller Williams, and others, conspired to inflate commissions. The lawsuit was filed on behalf of home sellers and focused on the commissions paid to the brokers representing the buyers of their homes.
A jury found NAR, Keller Williams, and HomeServices of America guilty in the Sitzer/Burnett commissions suit. The jury ruled against these organizations and ordered them to pay $1.78 billion in damages to the sellers of more than 260,000 homes in Missouri, Kansas, and Illinois. The lawsuit claimed that the defendants’ practices led to inflated commissions and were anti-competitive.
The verdict has had a significant impact on the real estate industry, and there are discussions about what an appeal of the $1.8 billion verdict might look like. The case has brought attention to the practices of real estate brokerages and the fees charged to clients, potentially leading to changes in the industry.