One of the nation's largest real estate brokerages has agreed to pay $70 million to settle a lawsuit over soaring brokerage fees.
In addition to paying that amount, Keller Williams Realty will take several steps to increase transparency in real estate commissions for homebuyers and sellers.
The Austin-based agency plans to add the money to a settlement fund distributed by the court. Homebuyers who purchased properties from the Multiple Listing Service (MLS) between 2015 and 2019 may be eligible to receive a portion of the funds.
This impressive settlement resolves more than a dozen lawsuits across the country over fees charged by real estate agents in the United States.
In some cases, it can reach 6%, which is about twice the global average.
Michael Ketchmark, an attorney representing the plaintiffs in the lawsuit, hailed the development as “a huge victory for homeowners and homebuyers across the country.”
In addition to paying that amount, Keller Williams Realty will take several steps to increase transparency in real estate commissions for homebuyers and sellers.
This impressive settlement resolves more than a dozen lawsuits across the country over fees charged by real estate agents in the United States. In some cases, it can reach 6%, which is more than double his world average.
The main allegations in the lawsuit involve the nation's largest real estate brokerage practices that unfairly force homeowners to pay artificially high commissions when selling their homes. That's what it is.
In October, a federal jury in Missouri found that the National Association of Realtors and several major real estate brokerages, including Keller Williams, conspired to charge home sellers commissions to home buyers, in violation of federal antitrust laws. It was determined that he had requested payment of
The jury ordered the defendants to pay approximately $1.8 billion in damages. If her treble damages, in which the plaintiff could receive up to three times the actual or compensatory damages, are awarded, the defendant could have to pay her more than $5 billion.
More than a dozen similar lawsuits are pending against the real estate brokerage industry.
The case has been controversial in the industry, with one report estimating that up to 80 percent of real estate agents could lose their jobs.
“I feel like real estate agents are getting an unfair reputation with this,” real estate agent Desirae Wyckoff, 36, told DailyMail.com last year.
“I saw a lot of people holding up their licenses.”
Gary Keller, executive chairman of Keller Williams, said the company has “full confidence in the efficacy of the appeal,” but the settlement eliminates a long period of uncertainty for agents and franchisees. He said he was deaf. The ruling also means the company will not be embroiled in counterfeiting lawsuits.
“The decision to settle was reached after careful consideration of the immediate and long-term well-being of our agents, franchisees, and the business model on which they depend,” Keller said in a company-wide email. Ta.
Real estate agent Desirae Wyckoff (pictured) told DailyMail.com last year: “I feel like real estate agents get an unfair reputation for this.”
Keller Williams said the company has “full confidence in the strength of the appeal,” but the settlement will eliminate long-term uncertainty for agents and franchisees.Photo: CEO Mark Willis
“This decision was made to provide stability, peace of mind, and freedom for all of us to focus on our mission without distractions.”
The company operates more than 1,100 offices and has approximately 180,000 agents.
Keller Williams made it clear in the terms of the proposed settlement that agents would inform clients that fees were negotiable and that there was no minimum amount that clients had to pay or that was set by law. agreed to do so.
The company also revealed its remuneration system for agents who work with prospective home buyers, including a “collaboration fee,” in which the seller's agent offers to compensate the agent representing the buyer for their services. I also agreed to do so.
As part of the settlement, which must be approved by the court, Keller Williams agents will no longer be required to be members of the National Association of Realtors or follow the industry group's guidelines.
Two other major real estate brokerages agreed to similar settlement terms last year. In their respective agreements, Anywhere Real Estate Inc. agreed to pay his $83.5 million and Re/Max agreed to pay his $55 million.
Obtaining a real estate license has become a popular side hustle for Americans in recent years. A record 156,000 people became real estate agents in 2020 and 2021, when the pandemic forced many people to lose their jobs, according to NAR.
DailyMail.com has reached out to NAR and Keller Williams for comment.
