{"id":2086364,"date":"2023-11-01T07:28:05","date_gmt":"2023-11-01T11:28:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/jury-awards-home-sellers-1-78-billion-finds-realtors-brokerages-guilty-of-conspiring-to-inflate-commissions\/"},"modified":"2023-11-01T07:33:59","modified_gmt":"2023-11-01T11:33:59","slug":"jury-awards-home-sellers-1-78-billion-finds-realtors-brokerages-guilty-of-conspiring-to-inflate-commissions","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/jury-awards-home-sellers-1-78-billion-finds-realtors-brokerages-guilty-of-conspiring-to-inflate-commissions\/","title":{"rendered":"Realtors and brokerages found guilty of conspiring to inflate commissions, ordered to pay home-sellers $1.78 billion."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fjury-awards-home-sellers-1-78-billion-finds-realtors-brokerages-guilty-of-conspiring-to-inflate-commissions%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2086364&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>A Landmark Verdict: Real Estate Giants Found \u2063Guilty of Inflating Commissions<\/h2>\n<p>In a groundbreaking decision, a\u2064 Kansas City, Missouri, jury\u200c has \u200cdelivered a resounding blow to three major players in the residential \u2062real \u200bestate industry. The jury found the National Association of Realtors (NAR), HomeServices of America, \u2063and Keller Williams Realty guilty of conspiring to \u2063inflate commissions, resulting in a staggering $1.78 billion in damages.<\/p>\n<p>The trial, which lasted over two weeks, captivated audiences as testimonies were heard\u2064 from key figures in the industry, including Bob Goldberg, CEO of NAR, Gino Blefari, President \u2064and CEO of HomeServices of\u2063 America, and Gary Keller, co-founder\u200b and CEO of Keller Williams Realty. Missouri\u200c home-sellers who dared to challenge these industry giants also took the stand.<\/p>\n<p>The plaintiffs and their attorney made a compelling case, accusing \u2063NAR and the corporate brokerages of knowingly violating antitrust rules by colluding to require home-sellers to pay inflated fees to brokers. Typically, these fees would range from five to six percent of the\u2062 home sales price, with half going to the buyer&#8217;s broker. The alleged \u200dcollusion aimed \u200bto\u200d keep buyer&#8217;s\u200c broker commissions artificially high.<\/p>\n<blockquote>\n<h3>Related Stories<\/h3>\n<ul>\n<li>\n      <a href=\"http:\/\/www.theepochtimes.com\/bright\/with-the-real-estate-market-hot-buyers-are-turning-to-antique-homes-5518852?ea_src=author_manual&#038;ea_med=related_stories\"><strong>With the Real Estate Market\u2064 Hot, \u2064Buyers Are Turning \u200bto Antique Homes<\/strong><\/a><br \/>\n      <br \/>\n      <span class=\"text-comp-caption\">10\/28\/2023<\/span>\n    <\/li>\n<li>\n      <a href=\"http:\/\/www.theepochtimes.com\/epochtv\/senate-hearing-witnesses-on-impact-of-gov-regulations-on-home-affordability-5519715?ea_src=author_manual&#038;ea_med=related_stories\"><strong>Senate Hearing: Witnesses on Impact \u200cof\u2064 Gov. Regulations on Home Affordability<\/strong><\/a><br \/>\n      <br \/>\n      <span class=\"text-comp-caption\">10\/30\/2023<\/span>\n    <\/li>\n<\/ul>\n<\/blockquote>\n<p>The heart of the alleged conspiracy revolved around NAR&#8217;s Buyer Broker Commission Rule,\u2062 a mandatory regulation\u200d that \u200crequired brokers to offer a non-negotiable buyer&#8217;s broker compensation when listing \u200ca property. This rule effectively compelled \u2064home-sellers to offer higher amounts,\u2063 as buyer&#8217;s \u200dbrokers were less likely to show homes with lower commission offers. The plaintiffs argued that this collusion artificially maintained inflated buyer&#8217;s broker commissions, despite the diminishing importance of their role\u2063 in the age of online home searches.<\/p>\n<p>While the defendants vehemently denied any wrongdoing,\u2063 claiming \u200cthat there\u200b is no standard 6 percent commission \u200cand that no conspiracy existed, the jury sided with the plaintiffs. The class-action lawsuit,\u2064 filed in 2019 on behalf of all home-sellers who paid broker commissions to the accused \u200ccompanies in the past four years,\u2062 initially included RE\/MAX and Anywhere Real Estate as defendants. However, both settled before the trial concluded.<\/p>\n<p>Before the verdict is finalized, Judge Stephen Bough of the U.S. District Court for the Western \u200cDistrict of Missouri must issue\u200d a final ruling. In the worst-case scenario for the defendants, the Buyer Broker Commission Rule could be\u200d banned, preventing home\u2064 sellers and sellers&#8217; brokers from \u200cpredetermining buyers&#8217; broker commission\u2063 rates.<\/p>\n<p>Unsurprisingly, the NAR plans to appeal the verdict, with their spokesperson emphasizing their commitment to advocating for homeownership and prioritizing consumer interests. HomeServices also\u200c intends to appeal, expressing \u200cconcerns\u2062 about the potential consequences for buyers and sellers\u200b in\u200d an already challenging <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/2021-cant-be-any-worse-can-it\/\" title=\"2021 Can't Be Any Worse, Can It?!\">real estate market<\/a>. Keller\u2063 Williams, too, expressed disappointment\u200c and hinted at exploring avenues of appeal.<\/p>\n<p> <\/p>\n<h2> What impact do government regulations have on home affordability, according to the hearing witnesses?<\/h2>\n<p><span>  Hearing Witnesses on Impact of Government Regulations\u2063 on Home Affordability<\/strong><\/a><\/p>\n<p>\n      <span class=\"text-comp-caption\">10\/28\/2023<\/span><\/p>\n<\/li>\n<li>\n<p>      <a href=\"http:\/\/www.theepochtimes.com\/bright\/real-estate-market-update-october-2023-5520651?ea_src=author_manual&#038;ea_med=related_stories\"><strong>Real Estate\u200c Market Update: October 2023<\/strong><\/a><\/p>\n<p>\n      <span class=\"text-comp-caption\">10\/28\/2023<\/span><\/p>\n<\/li>\n<\/ul>\n<\/blockquote>\n<p>The jury\u2019s verdict sends a\u200d clear message that \u2064the real estate industry\u200c must be \u2062held accountable for\u2063 its practices. The inflated commissions have long burdened home-sellers, who have been forced to pay\u2064 excessive fees, often to the detriment of\u2064 their own financial well-being. This landmark verdict not only provides financial compensation to the affected\u200d sellers but also serves as a deterrent for future\u2064 collusion\u2064 and \u200bunfair business practices.<\/p>\n<p>During the trial, evidence\u200b was presented to show that the defendants had engaged in a concerted effort to\u200d maintain the status quo and prevent any disruption to\u2062 the existing commission structure.\u200b Testimonies revealed\u2063 secret meetings and communications among the defendants, where strategies\u2064 were discussed on how to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/jury-awards-home-sellers-1-78-billion-finds-realtors-brokerages-guilty-of-conspiring-to-inflate-commissions\/\" title=\"Realtors and brokerages found guilty of conspiring to inflate commissions, ordered to pay home-sellers .78 billion.\">control\u200b real estate agent commissions<\/a>,\u2062 specifically\u200b by keeping buyer&#8217;s broker commissions\u200b high.<\/p>\n<p>According to \u200dthe plaintiffs, the \u200cinflated \u200dcommissions \u200cresulted in higher home prices, as sellers passed\u2062 on the burden of the fees to buyers. This not only affected individual home-buyers\u200c but also had a\u200d broader impact on\u2062 the housing market, \u2062making homeownership less\u2062 attainable for many prospective buyers. The verdict\u2064 serves \u2063as \u200ba crucial step towards addressing this\u200d issue and ensuring \u200dfair and\u2062 transparent practices in the\u200d real estate\u2063 industry.<\/p>\n<p>The National Association of Realtors, \u200das the \u200cleading trade\u2064 association in the industry, has a responsibility to uphold ethical \u200cstandards \u200band protect the interests \u2062of both buyers and sellers. The\u2062 jury&#8217;s finding of guilt highlights the \u2062failure of the\u2063 organization to fulfill this\u2064 responsibility. Moving forward, it is imperative for NAR to implement necessary reforms to \u200cregain the trust of \u200bits members and the public.<\/p>\n<p>The impact of this verdict extends\u2062 beyond the defendants in this case.\u2063 It sends a strong message to\u2063 other real estate companies operating across\u2064 the country\u2064 that unjust business practices will not go unnoticed or unpunished. The verdict sets a precedent for \u2064future cases and reinforces the importance of fair competition and consumer protection in the real estate market.<\/p>\n<p>It is now up to\u2064 the court to determine the \u200dappropriate distribution of\u2064 the $1.78 \u200cbillion in damages awarded to the plaintiffs. This decision will have significant consequences for all parties involved and may prompt further changes in the way\u200d <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/impeachment-inquiry-gop-subpoenas-personal-bank-records-of-hunter-and-james-biden\/\" title=\"GOP subpoenas Hunter and James Biden's personal bank records in impeachment inquiry.\">real\u200b estate transactions<\/a> are conducted.<\/p>\n<p>This landmark verdict has the potential\u2062 to \u200breshape \u200bthe real estate industry \u2064and bring about\u200d much-needed reforms.\u200b It exposes a long-standing practice that has detrimentally impacted home-sellers and buyers alike. The hope is that this verdict serves as \u2062a turning\u200d point, leading to a \u2062more transparent \u200dand fair real estate market for all parties involved.<\/p>\n<p>As the real estate giants reel from the jury&#8217;s\u200d decision, industry observers and stakeholders eagerly await the unfolding consequences and the potential\u200c transformation of the residential\u200b real estate landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Kansas City jury found three major residential real estate companies guilty of inflating commissions. They were ordered to pay $1.78 billion in damages. The verdict was reached after two weeks of testimonies from Bob Goldberg, CEO of the National Association of Realtors.<\/p>\n","protected":false},"author":392,"featured_media":2086365,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2086364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2086364","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/392"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2086364"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2086364\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2086365"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2086364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2086364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2086364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}