Realty ONE, @properties reach settlements in commission cases
The brokerages are the first to settle following preliminary approval of the NAR agreement by a Missouri judge earlier this week.
Now that the clock is ticking for brokerages and MLSs not covered by the NAR agreement, the first opt-in settlements are starting to roll in.
Realty ONE Group and At World Properties, the parent company of @properties and Christie's International Real Estate, both announced they have resolved class-action commissions lawsuits.
Neither company provided details on how much it will be paying into the settlement fund; court documents only indicate that settlements have taken place and a request was made to stay the Gibson case in Missouri for those involved in the latest settlement.
The filing of the preliminary settlement agreement by the Sitzer/Burnett home sellers on April 19 triggered a 60-day countdown for large brokerages and non-Realtor MLSs to opt in to the settlement and pay damages, or request mediation.
More than 90 brokerages and around 30 MLSs now have until June 18 to take action.
The latest settlements come during a busy week for the courts. Along with granting preliminary approval of the NAR settlement on April 23, Judge Stephen Bough agreed to consolidate the Gibson and Umpa cases in Missouri.
Which cases were the brokerages involved in? The two firms were named in several copycat lawsuits filed after the Sitzer/Burnett verdict.
Realty ONE or one of its affiliates was named as a defendant in the Masiello case in Arizona, the Umpa case in Missouri, the Grace case in Northern California and the Boykin case in Nevada, which was subsequently dismissed and consolidated with another Nevada suit known as Whaley.
At World was one of several defendants in the Umpa case, and the firm was named as the sole defendant in the Tuccori case brought by a homebuyer in Illinois.
What Realty ONE had to say: The California-based global franchisor appears pleased to move on from litigation and focus on the business of real estate.
"Our 100% commission model and collective growth mindset was made for the opportunities that now exist in real estate," said Kuba Jewgieniew, CEO and founder of Realty ONE Group International. "We don't want to spend any more time with the distractions that litigation tends to bring and instead are ready to blow the doors open to the next few years of an exciting real estate market."
What At World had to say: In a statement, At World noted that the agreement covers all company-owned brokerages, including those under the @properties, Christie's International Real Estate, Ansley Real Estate and Sereno brands, as well as independently owned brokerages that are part of the @properties and Christie's International Real Estate affiliate networks in the U.S.
"Settling these claims today allows us to move beyond a very costly litigation process and focus our full time, energy and resources on what matters most: our agents, affiliate brokerages, staff and clients," said Mike Golden, co-CEO of @properties and Christie's International Real Estate.