real estate class action lawsuit settlement of $500

$500M Real Estate Class Action Lawsuit: Are You Eligible?

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The U.S. real estate market has been shaken by two significant real estate class action settlements aimed at addressing alleged anticompetitive practices that inflated broker commission fees. These lawsuits, involving major real estate organizations and brokerages, have resulted in over $500 million in settlements. For home sellers, this is a pivotal moment to claim compensation and understand the changes reshaping the industry.

In today blog, we’ll provide detailed steps to join the settlements and insights into how these cases may impact real estate transactions moving forward.

Key Settlements in the Real Estate Class Action Lawsuit

If you sold a home listed on a Multiple Listing Service (MLS) between October 31, 2017, and July 23, 2024, and paid a real estate broker commission, you may be eligible to claim compensation from class action settlements totaling over $500 million for allegedly inflated commission fees.

Settling Parties:

  • Brokerages: Anywhere, RE/MAX, Keller Williams, Compass, Real Brokerage, Realty ONE, @properties, Douglas Elliman, Redfin, Engel & Völkers, HomeSmart, and United Real Estate.
  • Organizations: National Association of Realtors (NAR) and HomeServices.

$110 Million Settlement in the Real Estate Broker Commission Class Action

This settlement addresses allegations that several major real estate brokerages conspired to maintain high commission rates, which unfairly inflated costs for home sellers. Under this agreement, individuals who sold residential properties through brokers between October 31, 2017, and July 23, 2024, may be eligible for compensation. Claimants can file for benefits by May 9, 2025, by visiting the official settlement website.

$418 Million Settlement with the National Association of Realtors (NAR)

In March 2024, the NAR agreed to a $418 million settlement to resolve allegations of anticompetitive practices. The settlement was approved by U.S. District Judge Stephen Bough on November 26, 2024. This case focused on claims that NAR’s policies led to inflated commission fees for home sellers.

nar real estate settlement

How To a Claim for the Real Estate Class Action Settlement

Eligibility Criteria for the Real Estate Class Action Lawsuit

If you sold a home and paid broker commissions during the specified periods, you might be eligible for compensation. You are probably eligible to participate and claim your part, if:

  • You sold a home during specific eligible dates.
  • Your property was listed on a multiple listing service (MLS) anywhere in the United States.
  • You paid a commission to a real estate brokerage as part of the sale.

For detailed information about the eligible date ranges and to determine your eligibility, visit the official settlement website: RealEstateCommissionLitigation.com.

How To Claim for the Real Estate Class Action Settlement

To join the settlements, please follow the following steps:

  • Check the official website above carefully, make sure you’re eligible and not making a fraudulent claim.
  • Provide proof of the home sale.
  • Submit documentation of the commission fees paid.
  • File your claim by the deadline on the official settlement websites.

Deadline: 05/09/2025

For more details, visit the settlement pages linked in the official announcements.

How the Real Estate Class Action Lawsuit Impacts Home Sellers and Buyers

real estate class action lawsuit

These settlements mark a turning point for real estate transactions in the U.S. Here’s what’s changing:

Commission Structures

Traditionally, sellers covered both their agent’s and the buyer’s agent’s commissions. Moving forward, buyers may be required to pay their own agent’s fees, fostering more transparent and negotiable commission agreements.

Mandatory Buyer-Agent Contracts

In many markets, buyers will now need to sign representation agreements with their agents before viewing properties. These contracts clearly outline compensation terms, ensuring greater clarity and fairness.

Final Thoughts

The real estate class action lawsuits have brought attention to practices that many home sellers may not have questioned. If you believe you’re eligible for compensation, act quickly to file your claim before the deadlines. As the industry evolves, staying informed will help you navigate these changes and make the most of your real estate transactions.

For more updates on class action settlements and industry news, visit Sparrow’s Blog.