A Minnesota home seller has opened up a class-action lawsuit, alleging that the National Association of Realtors inflated the cost to sellers and suppressed competition with buyer broker compensation requirements, when listing on an MLS site, according to HousingWire.
“The conspiracy has saddled home sellers with a cost that would be borne by the buyer in a competitive market,” the complaint states, according to the report.
“Moreover, because most buyer brokers will not show homes to their clients where the seller is offering a lower buyer broker commission, or will show homes with higher commission offers first, sellers are incentivized when making the required blanket, non-negotiable offer to procure the buyer brokers’ cooperation by offering a high commission.”
The suit has been filed against the NAR, HomeServices of America, Keller Williams, RE/MAX and Realogy. The suit alleges that despite a reduced role in the transaction process, brokers were still able to earn 2.5-3% commission.
"The suit states that it will represent any sellers who paid a broker commission during the sale of their property in the last four years in areas covered by regional MLS sites, which includes sellers in Texas, Maryland, North Carolina, Ohio, Colorado, Michigan, Florida, Nevada, Wisconsin, Minnesota, Pennsylvania, Arizona, Virginia, Utah and Washington, D.C.," according to the report.
To learn more about the suit, click on the image above.