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Real estate industry facing pushback to longstanding rules setting agent commissions on home sales
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File - Homes in Middlesex Township, Pa., are shown on Apr. 19, 2023. A case in federal court in Missouri ended Tuesday with a jury ordering the National Association of Realtors and some of the nation's biggest real estate brokerages to pay almost $1.8 billion in damages after finding that they artificially inflated commissions paid to real estate agents. - photo by AP Photo/Gene J. Puskar, File
LOS ANGELES (AP) — A series of court challenges seek to upend longstanding real estate industry practices that determine the commissions agents receive on the sale of a home — and who foots the bill. A federal jury in one of those cases on Tuesday ordered the National Association of Realtors along with some of the nation's biggest real estate brokerages to pay almost $1.8 billion in damages, after finding they artificially inflated commissions paid to real estate agents. The verdict in the 2019 case in Missouri stated that the defendants “conspired to require home sellers to pay the broker representing the buyer of their homes in violation of federal antitrust law.” If treble damages — which allows plaintiffs to potentially receive up to three times actual or compensatory damages — are awarded, then the defendants may have to pay more than $5 billion.