Why the DOJ will struggle to approve the NAR settlement

As you probably know, a lot has already changed, and the settlement isn’t even approved yet. I’d recommend talking to our partner here to position yourself for growth by transforming your typical agents into professional real estate consultants.

Check out this picture straight out of MLS, this is an agent defining where the boundary lines are.

No wonder we are sued…

Anyway…

I think that the DOJ will have a hard time approving this settlement for several reasons.

A Realtor friend of mine is actually planning to list her own property and include Buyer Agent (BA) compensation in the remarks. This might result in fines or disciplinary actions if the settlement stands, but it would give her the standing to challenge it.

Let me explain.

Have you heard about affirmative action being overturned for violating the equal protection clause? Similarly, this settlement seems to violate antitrust laws by limiting competition among home sellers and agents.

For example, if NAR or the MLS mandated a minimum commission, it would clearly be price fixing. The proposed settlement aims to restrict cooperative commissions, further limiting competition among sellers and agents.

Sellers who do not wish to pay buyer agent commissions have banded together and conspired to limit competition among other sellers who are happy to pay a buyer agent commission.

They are trying to rob Peter to pay Paul but any form of conspiring to constrain competition is a Sherman violation.

Basically, the settlement appears to violate antitrust laws. To comply with the Sherman Act, we should allow any coop commission to be advertised or none at all, while letting buyer agents operate within legal limits.

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Best,

Alexa