Class Action Lawsuit Attacks MLS Systems

[Mark Rogers]

It's far too soon to say whether this will go anywhere, but this is absolutely a lawsuit to watch. A few high profile class action law firms are going after the National Association of Realtors, many of the largest MLS systems in the country, and others alleging that the current system in which MLS systems require sellers to pay commissions to buyer's agents violates antitrust laws. Copy of Class Action Complaint

[Mark Rogers]

The outcome might not be quite so easy to predict. A home seller might be able to make a case that it is anti-competitive behavior for a group of licensed sales agents who control an overwhelming majority of the market to come together and agree that they are going to force a seller to agree to pay a commission not only to the agent representing the seller but also to the agent representing the buyer in order for the seller to be able to list his or her house on the MLS system that the agents control, which is also the system that sells the overwhelming majority of houses in the area. With the stakes involved, the NAR, MLS systems, and national brokerages will likely throw almost unlimited resources at defending the suit, so it's difficult to predict against them. The stakes involved are also high enough that it would not be surprising to see the real estate lobby pursuing federal legislation to protect the system that they have created.