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.