By Daily Mail (U.S.) | Created at 2024-11-17 20:06:32 | Updated at 2024-11-17 22:17:37
2 hours ago
A key deadline has passed in the $1 billion realtor settlement, but it is still possible to claim a share of the payout.
The real estate industry was hit by its biggest shakeup in a century in August, when the agent commission system was overturned after a series of lawsuits against major brokerages.
Before August 17, an agent working on behalf of a seller would charge their client a fee of around 5 to 6 percent, which would then be shared with the buyer's agent.
These fees became baked into house prices, helping to inflate values, and some realtors would push buyers toward homes with larger commissions.
The lawsuits argued the practice violated antitrust laws by allowing brokers to collude in order to raise commission prices, and the brokerages agreed to settle.
Anyone who sold a home during a specific date range and paid commission to a real estate agent is eligible for a payout. Here are the key dates to know.
The real estate industry was hit by its biggest shakeup in a century in August , when the agent commission system was overturned after a series of lawsuits against major brokerages
In many cases, the deadline to be excluded from the settlement has passed.
There are three main settling parties, according to the official settlement website, which each encompass various brokerages.
The largest settlement, which amounts to $418 million, is with the National Association of Realtors (NAR) and HomeServices.
There is also a $110 million settlement with firms including Compass, Real Brokerage and Redfin, and a third settlement with Anywhere, RE/MAX and Keller Williams.
The deadlines to be excluded from all three settlements passed earlier this year.
But the deadline to submit a claim form for any of the three settlements is not until May 9, 2025.
For the NAR settlement, there is also a hearing in Missouri on November 26, 2024, to determine the 'fairness, reasonableness and adequacy of the terms of the settlements.'
There are three criteria you have to meet in order to be eligible to claim a part of any three of the settlements.
You must have sold a home during the eligible date range and paid a commission to any real estate brokerage in connection with the sale of the home. Details of eligible date ranges for all settlements can be found here.
Americans must have also listed the home that was sold on a multiple listing service (MLS) anywhere in the US.
An MLS is a platform that real estate agents use to list properties for sale and find homes for buyers.
Anyone who sold a home during a specific date range and paid commission to a real estate agent is eligible for a payout
There are hundreds of different multiple listing services across the country, and real estate agents pay a fee to belong to them.
In exchange for membership, agents can post listings of the properties their clients are selling and view other agents' listings.
Traditionally, listing agents and buyer's agents participating in a MLS agreed to share commissions, with the buyer's agent's compensation included as part of the listing.
Consumers, however, cannot see this part of the listing. In theory, this system enables agents to 'steer' buyers to houses on which the commission is higher so they can profit more from a sale.
Under the new rules brought in following the landmark settlements, commissions for buyer's agents can no longer be listed on an MLS.
Seller's agents and buyer's agents must only discuss fees offline.
