In a recent development of the ongoing California commission suit, the National Association of Realtors (NAR), along with several brokerages and local Realtor associations, has come under fire for allegedly colluding to increase agent commission rates. The lawsuit, filed by a group of home sellers, claims that these industry players engaged in anti-competitive practices, ultimately leading to higher costs for consumers.
Here are the key points from the case:
– NAR, brokerages, and 21 local Realtor associations are accused of collaborating to artificially inflate agent commission rates.
– The lawsuit alleges that the defendants utilized certain policies and rules that hindered competition, preventing home sellers from negotiating lower commission rates.
– It is claimed that these practices also limited the ability of new, innovative business models to emerge in the real estate market.
– The plaintiffs argue that the collusion led to inflated home prices as sellers were compelled to accommodate higher commission fees in order to cover their expenses.
– If successful, the lawsuit may have significant implications on the future of the real estate industry, potentially opening the door for more competitive and cost-effective alternatives for home sellers.
As the case unfolds, it underscores the importance of fair competition in the mortgage industry, ensuring that consumers have access to competitive rates and choices when working with real estate agents.
You can read this full article at: https://www.housingwire.com/articles/california-commission-suit-alleges-collusion-in-the-city-of-angels/(subscription required)
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