Real Estate Industry Faces Wave of Commission Lawsuits and Litigation Fallout

The real estate industry is facing potential upheaval as a federal civil case in Kansas City found the National Association of Realtors (NAR) and major brokerages guilty of conspiring to keep commissions artificially high. The judge overseeing the case has the power to break up the century-old commission structure, which could lead to significant changes in the industry. A settlement is also possible, but regardless of the outcome, experts predict a radical reorganization of the commission system in the US. Changes could result in lower commissions, more transparency, and increased competition among buyers' agents. However, there are concerns that breaking up the commission system could lead to higher upfront costs for buyers and lower listing prices for sellers.