Realtors under fire: The impact of a $1.8 billion commission lawsuit verdict

The real estate industry is facing legal challenges that aim to disrupt the long-standing practice of determining agent commissions and who pays for them. In a recent case, a federal jury ordered the National Association of Realtors (NAR) and major real estate brokerages to pay nearly $1.8 billion in damages for artificially inflating commissions. Another class-action lawsuit has been filed seeking nationwide coverage for anyone who sold a home in the last five years. The focus of the lawsuits is an NAR rule that requires home sellers to pay the commission for the agent representing the buyer, in addition to their own listing agent's commission. Plaintiffs argue that this rule keeps commissions artificially high and costs Americans billions of dollars. The NAR defends the practice, stating that it benefits consumers by giving them access to more buyers and professional representation. The outcome of these lawsuits could potentially reshape the real estate industry's commission structure.