Home sellers in Northern California has sued Re/Max, Keller Williams and other national real estate brokerages

Home sellers in Northern California has sued Re/Max, Keller Williams and other national real estate brokerages and realtor trade associations, accusing them of conspiring to artificially inflate the commissions paid to buyers' brokers, per Reuters.


The plaintiff, a woman from Marin County, initiated the lawsuit representing a proposed class of home sellers in Marin, Mendocino, Napa, Solano, and Sonoma County. Alleging violations of U.S. antitrust laws and California's unfair competition law, this case adds to a growing number of legal actions following a federal court jury in Kansas City awarding nearly $1.8 billion in damages on October 31 to a class of home sellers challenging buyer-broker commissions. Commissions in the U.S. typically range from 5% to 6% or more of the home sale.

Recent weeks have seen similar lawsuits challenging the real estate industry's commission practices in federal courts in Texas, Pennsylvania, and New York. The National Association of Realtors, based in Chicago, defended the commission practice, emphasizing its role in creating "efficient, transparent, and accessible marketplaces." The association, denying wrongdoing in the Kansas City litigation, has committed to appeal.

Keller Williams asserted its compliance with the law on cooperative compensation, stating it would vigorously defend against the lawsuit. eXp expressed its commitment to fair and transparent practices in line with the law. Re/Max, Compass, Anywhere, and Bay Area Real Estate Information Services have not provided immediate comments, and settlements were reached between Re/Max and Anywhere and the plaintiffs in the Kansas City case.

In Washington, D.C., the National Association of Realtors and the U.S. Justice Department are engaged in a legal dispute over the government's attempt to revive an investigation into industry home-sale rules. The lobbying group argued that the government concluded its investigation and should not reopen it. The case is identified as Grace v. National Association of Realtors in the U.S. District Court for the Northern District of California, No. 3:23-cv-06352. Jill Manning, Daniel Warshaw of Pearson Warshaw, and Douglas Millen of Freed Kanner London & Millen represent the plaintiff.