NAR Lawsuit Update 2023: Key Testimonies and Implications for the Real Estate Industry
The National Association of Realtors (NAR) is currently embroiled in a series of lawsuits that have the potential to reshape the real estate industry. One of the most notable cases is the Sitzer/Burnett buyer-broker commissions trial. This article aims to provide an in-depth update on the NAR lawsuit as of 2023, focusing on key aspects like commission structures, class-action status, antitrust allegations, and recent testimonies from industry leaders.
Key Lawsuits and Their Status
Burnett v. National Association of REALTORS et al.
- Case No: 4:19-cv-00332-SRB (W.D. Mo. 2019)
- Filed: April 20, 2019
- Allegation: Home sellers unfairly pay the commissions of buyers’ brokers.
- Status: Trial to begin on October 16, 2023.
Sitzer/Burnett Buyer-Broker Commissions Trial
- Key Testimonies: Gary Keller and Marc King
- Allegation: Conspiracy regarding commission rates.
- Status: The defense recently concluded much of its case; jury deliberations could commence as early as Monday afternoon.
Recent Testimonies and Their Implications
Gary Keller: Debunking the Myth of Standard Commissions
Gary Keller, Co-founder of Keller Williams, took the stand to challenge the widely held belief in a standard 6% commission rate in real estate transactions. He emphasized that Keller Williams does not impose any commission rates on its agents, thereby debunking the plaintiffs’ claims of a conspiracy to maintain such rates.
Marc King: No Company Mandate on Commissions
Marc King, President of Keller Williams, also testified, reinforcing Gary Keller’s statements. He stated unequivocally that there is no company mandate dictating commission rates, further weakening the plaintiffs’ case.
Upcoming Jury Deliberations
The trial is nearing its conclusion, with both the plaintiffs and the defense expected to present their closing arguments soon. Depending on the duration of these arguments, jury deliberations could commence as early as Monday afternoon.
The ongoing NAR lawsuits and the recent testimonies from Gary Keller and Marc King have shed light on the complexities surrounding commission rates in the real estate industry. By challenging the notion of a standard 6% commission, they have opened up a broader discussion that could have far-reaching implications. As the trial moves into its final stages, all eyes will be on the jury’s deliberations, which could set a precedent for future cases involving commission rates.
NAR lawsuit 2023, NAR commission lawsuit, NAR class action lawsuit, NAR lawsuit update 2023, NAR antitrust lawsuit, NAR lawsuit commissions, Gary Keller, Marc King, Sitzer/Burnett trial, Keller Williams, Commission rates, Buyer-broker commissions, Real estate industry, Conspiracy, Standard 6% commission, Jury deliberations
For more information on real estate in specific areas, you can visit Orson Hill Realty for Evergreen, Colorado and Platinum Real Estate for Marco Island, Florida.
Southwest Florida Homes for Sale
It's Nice to Share
Comment, Write a Blog Post, Create Groups, Get Seen!
Comments, Opinions and Facts Go Here...👇
One of the major cases is Burnett v. National Association of REALTORS et al., focusing on buyer-broker commissions.
Another significant case is the Sitzer/Burnett buyer-broker commissions trial, which is nearing its conclusion.
Gary Keller, Co-founder of Keller Williams, recently testified in the Sitzer/Burnett trial.
Keller challenged the notion of a "standard 6% commission" in real estate transactions.
He emphasized that Keller Williams does not impose any commission rates on its agents.
Marc King, President of Keller Williams, also took the stand in the Sitzer/Burnett trial.
King reinforced Keller's statements, stating there is no company mandate on commissions.
Both Keller and King's testimonies weaken the plaintiffs' case regarding a conspiracy to maintain commission rates.
Jury deliberations for the Sitzer/Burnett trial could commence as early as Monday afternoon.
The outcomes of these lawsuits could reshape commission structures and antitrust regulations in the real estate industry.
Gary Keller felt personally attacked by the plaintiffs’ attorney, Michael Ketchmark, during his testimony.
Keller denied any "collusion theory" as an explanation for stable commissions, a claim raised earlier in the trial.
The defense in the Sitzer/Burnett trial recently concluded much of its case.
Both the plaintiffs and the defense are expected to present their closing arguments soon.
The article includes references for further reading and context.
The article is aimed at both real estate professionals and consumers who want to understand the ongoing legal battles.
The article also provides links to Orson Hill Realty for Evergreen, Colorado, and Platinum Real Estate for Marco Island, Florida, for more localized real estate information.
The article concludes by stating that all eyes will be on the jury’s deliberations, which could set a precedent for future cases involving commission rates.
## Key Developments in the NAR 2023 Lawsuits
### Recent Verdict
- Outcome: In the significant case of Burnett v. National Association of REALTORS et al., the jury found the National Association of REALTORS (NAR) and other corporate defendants liable.
- Trial Duration: The decision came after an 11-day trial in a federal courtroom in Kansas City, Missouri.
### NAR's Response and Future Actions
- Appeal Plans: NAR intends to appeal the jury’s verdict, believing in the strength of their legal position. This process is expected to extend over several years.
- Financial Readiness: NAR has confirmed their capability to post bond for the appeal and is prepared for any potential financial outcomes.
### Implications for Real Estate Professionals
- Current Practices: There's no immediate requirement for REALTORS®, brokers, or MLSs to alter their practices due to this verdict. NAR emphasizes the importance of using buyer representation agreements for transparency and clarifying that commissions are negotiable.
- Future of Buyer Representation: This verdict does not necessitate changes in rules but raises concerns about the affordability of buyer representation for first-time homebuyers if the model changes significantly.
### Impact on Other Litigations
- Separate Trials: NAR states that this verdict does not directly influence other ongoing lawsuits. Each case is tried independently, and NAR remains optimistic about prevailing in these separate matters.
### Settlement Considerations
- Openness to Resolution: While NAR is open to a resolution that benefits both buyers and sellers, they remain confident in their appeal and future court decisions.
### Cooperative Compensation Rule
- Rule Evaluation: NAR continually reviews its rules, including the cooperative compensation rule, to respond to industry changes and consumer needs. They believe this rule serves consumer interests and promotes market-driven pricing.
### Potential Legal Actions
- Injunction Possibility: There's uncertainty about whether the plaintiffs will seek an injunction against the mandatory nature of NAR's rule. NAR is prepared to contest such efforts, emphasizing the rule's consumer and competitive benefits.
### Relation with Department of Justice (DOJ)
- DOJ Agreement: NAR reached an agreement with the DOJ nearly two years ago, which is upheld and considered separate from the Burnett case.
## NAR 2023 Lawsuit Update
The Burnett v. NAR verdict marks a critical moment in the real estate industry, potentially reshaping commission structures and antitrust regulations. With NAR poised to appeal, the industry is closely watching for future developments and their impact on real estate practices.
#NAR #2023 #Lawsuit