After months of negotiations, plaintiffs in the Sitzer/Burnett case filed an unopposed motion for preliminary approval of a settlement reached with Keller Williams.

This marks the third defendant to settle the antitrust lawsuit related to real estate agent commissions. According to court documents, the settlement is substantially similar to those reached with former defendants Anywhere Real Estate and RE/MAX, LLC. The National Association of Realtors (NAR) and HomeServices of America still remain as defendants.

NAR did not immediately return RESPA News’ request for comment.

“As with Anywhere and RE/MAX, the settlement was reached after a lengthy investigation and exchange of documentation relating to Keller Williams’s ability to pay,” the motion stated.

As with those previous settlements, the agreement provided for a $70 million common fund, as well as the same injunctive relief provided under the RE/MAX settlement. This relief included:

• Making it clear to franchisees that offers of compensation are not required.
• Increasing transparency to consumers, including recommending franchisees inform consumers that commissions are negotiable.
• Advising franchisees that agents must show properties regardless of the existence or amount of offered cooperative compensation.
• Not expressing or implying that there is a minimum commission requirement.
• Developing training materials consistent with these terms.
• No longer requiring NAR membership of agents.

The case is currently facing appeal, as in the fall of 2023 a jury of eight found the organizations had violated antitrust laws and engaged in a conspiracy to artificially inflate commissions paid to real estate agents. The finding has sparked several other cases against NAR, real estate brokers, and multiple listing services.

“Given the extraordinary cost savings realized by including Keller Williams in this round of notice to the settlement class, plaintiffs request the court grant this motion without delay and order that the Keller Williams settlement be noticed along with the Anywhere and RE/MAX settlements, and notice to be sent according to the original notice plan with only the changes discussed herein.”

RESPRO President and Executive Director Ken Trepeta, former NAR director of real estate services, told RESPA News:

“While I still think these cases lack merit and the rule in question is simply to avoid conflicts over commission splits at the closing table (splits which both RESPA and state law permit), at least one jury disagreed, so it not surprising to see another settlement. Litigation is extremely costly in and of itself and the ridiculous dollar amounts of the verdict must factor into the calculation of whether to settle. 

“There are a lot of things going on in our legal system today that really concern me as a lawyer and more importantly as an American. Adherence to the rule of law is becoming subjective and we are seeing jury awards that bear little to no resemblance to the harm done (if any).  This is not good for any functioning society in the long run.”