With the final approval hearing for the NAR commission lawsuit settlement approaching on Nov. 26, there is growing skepticism from various perspectives about its implications.
Whether you’re refining your business model, mastering new technologies, or strategizing for the next market surge, Inman Connect New York will equip you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders on Jan. 22-24, 2025.
Each week on The Download, Inman’s Christy Murdock delves deeper into the top-read stories of the week to provide you with the insights you need to kickstart your week. This week: As the Nov. 26 hearing for final approval of the National Association of Realtors commission lawsuit settlement approaches, voices from all sides are questioning its wisdom.
It was just over a year ago on Halloween when the Sitzer | Burnett verdict was delivered, triggering a year of turmoil, inquiries, and apprehensions that shook the real estate industry. On March 15, NAR reached a settlement with the implementation slated to take effect no later than Aug. 17. For many, this implementation was considered the final resolution to the entire ordeal, although the official approval was pending until Nov. 26.
EXTRA: Judge gives final approval to 9 commission lawsuit settlements
However, one of the members of the settlement class, who happens to be a law professor with strong opinions on the post-settlement landscape, is now challenging the validity of the settlement and opposing its finalization.
The University of Buffalo contracts law professor, who has been critical of new transaction forms since NAR’s proposed settlement was put into effect, is now taking her objections to the judge.
Tanya Monestier, a member of the homeseller class covered by the settlement due to selling a home in Rhode Island in 2022, has filed an objection in U.S. District Court for the Western District of Missouri.
In her filing, Monestier urges the court not to grant final approval to the NAR deal on Nov. 26 and to deny the plaintiffs’ attorneys’ request for $333 million in fees from the total $1 billion settlements already reached with NAR and other defendants in seller-led commission lawsuits.
What initially seemed like a procedural formality is now clouded in uncertainty as concerns mount over anticipated attorney fees and the relatively modest award amounts expected for homesellers themselves.
EXTRA: Objections raised against NAR and HomeServices antitrust settlement deals
Meanwhile, agents are adapting to the new landscape and assessing the impact of the settlement provisions, alongside this year’s sluggish market, on their commissions.
A year after the Sitzer verdict, here are my top 5 takeaways
7 new rules of the road for real estate transactions
In the post-Sitzer-Burnett era, Cara Ameer emphasizes the importance of being well-informed, prepared, and engaging in thorough consultations with buyers and sellers to provide top-notch service and advice.
EXTRA: ‘Danger Report’ sequel outlines 20 ‘opportunities’ for real estate
What do you want NAR to focus on next? Pulse
Whether you plan to attend this year’s NAR NXT event or follow Inman’s coverage, share your thoughts on what areas you would like the trade group to prioritize next.
EXTRA: Maine team transitions to eXp Realty, citing commission lawsuits as a factor