Keller Williams Settles Commission Lawsuit for $70 Million

Key points:

• Keller Williams agreed to pay $70 million to settle the Sitzer/Burnett lawsuit, which accused them of inflating real estate commissions.
• This settlement covers all home seller lawsuits nationwide and releases individual real estate agents and franchisees from further litigation.
• Keller Williams decided to settle due to industry uncertainty following the jury verdict against them.
• They join Anywhere and RE/MAX in settling, leaving NAR and HomeServices as the remaining defendants.
• Final approval for the settlements is pending.

Background:

• In October 2023, a jury found Keller Williams conspired to inflate commissions, awarding $1.7 billion in damages (potentially tripling to over $5 billion).
• The lawsuit centered on NAR‘s rule requiring commission sharing between listing and buyer’s agents, allegedly inflating costs for consumers.

Impact:

• This settlement provides some stability and clarity for the real estate industry while the remaining lawsuit proceeds.
• It remains to be seen how this will affect future commission structures and consumer costs.