If you sold a property listed on a multiple listing service (MLS) between October 31, 2017 and July 23, 2024 and paid a commission to a real estate broker, you may be entitled to claim compensation after a class action lawsuit was filed that has just reached a settlement.
This opportunity to obtain economic compensation arises from collective agreements totaling more than $730 million due to allegedly inflated commissions.
Recent real estate commission agreements cover various brokerage firms and specific eligibility dates. The companies involved include Compass, Real Brokerage, Realty ONE, At World Properties LLC, Douglas Elliman, Redfin, Engel & Völkers, HomeSmart, and United Real Estate.
According to the class action lawsuits, dubbed “real estate commission litigation,” several brokers and agents were accused of violating antitrust laws by conspiring to artificially increase commissions. Consumers claim that, due to this alleged anti-competitive agreement, they were forced to pay inflated commissions when selling their properties.
Details of the Agreements – How to Claim a Share of the $730 Millions
The aforementioned companies have collectively agreed to pay more than $110 million to a settlement fund. The broken-down payments are as follows:
- Compass Inc.: $57.5 million
- Real Brokerage: $9.25 million
- Realty ONE: $5 million
- @Properties: $6.5 million
- Douglas Elliman: $7.75 million plus up to an additional $10 million in contingent payments
- Redfin: $9.25 million
- Engel & Völkers: $6.9 million
- HomeSmart: $4.7 million
- United Real Estate: $3.75 million
Procedure to File as Plaintiff — The Total Value of All the Proposed Agreements Exceeds $730 Million
According to the terms of the agreements, group members can receive a proportionate share of each settlement fund to which they are entitled. For more details, you can visit the agreement’s website, RealEstateCommissionLitigation.com.
The key dates of the class action settlement:
- Deadline for exclusion and objection: October 3, 2024.
- Final approval hearing of the agreement: October 31, 2024.
- Deadline for submitting a valid claim form: May 9, 2025.
Those who have already filed a claim form with one of the other defendants do not need to file an additional one to receive a payment.
Persons who may be eligible to claim compensation may be:
- Those who sold a house within the eligible dates.
- Those who listed the house on a multiple listing service (MLS) anywhere in the United States.
- Those who paid a commission to a real estate agency in connection with the sale.
Required Documentation
To file a claim, applicants must provide closing documents reflecting the date of sale and the commissions paid to the real estate broker. It is important to note that those who do not qualify for this settlement should not file a claim.
Remember that you should not file any claims in this or any other class action lawsuit if you were not really affected, because you are filing under penalty of perjury. Those people who lie or lack the truth in a situation like this could face subsequent criminal consequences.
On October 31, 2024, the court will hold a hearing to decide on the Final Approval of the Agreements and the award of fees and costs to the “Class Counsel”. These firms, which include Ketchmark and McCreight and Williams Dirks Dameron, will request up to one-third (33.3%) of the Settlement Funds, plus expenses incurred.
The court may award a smaller amount. Compensation will also be sought for Class Representatives. You will be represented by these attorneys unless you choose to appear with your own attorney, although it is not necessary to participate in the hearing.