Brokerage damage amounts revealed; NAR request denied
Settlement details and dates have been set for Compass, Real, Douglas Elliman, Realty One and @properties, but NAR hit a roadblock in its fight with the DOJ.
The week ended with a flurry of court decisions and filings related to brokerage settlements in the buyer agent commission cases — and a setback for NAR.
In the Gibson case, which was filed on the heels of the Sitzer/Burnett verdict, new details emerged in five of the settlements.
Also on Friday, the National Association of Realtors' motion for a rehearing in its battle with the Department of Justice was denied by the U.S. Court of Appeals, which means the DOJ is free to reopen its case against the trade organization.
Gibson happenings: The filings late on Friday, July 12, include the proposed mailing notices — with key dates and final settlement amounts — that will be sent out to home sellers who are part of the Compass, Real Brokerage, Douglas Elliman, Realty One and @properties settlements.
There was also a filing asking for preliminary approval of the Redfin and Engel & Völkers settlements.
Dates to watch for: If approved by U.S. District Court Judge Stephen Bough, the mailings should go out later this month.
October 3 is the deadline to opt-out of the settlements or file objections to the terms.
October 31 — which is also the anniversary of the Sitzer/Burnett verdict — is when a hearing to finalize the settlements is scheduled in the U.S. District Court Western District of Missouri in Kansas City.
May 9, 2025 is the deadline to opt-in to the settlements.
Final figures: The sell-side commissions settlement fund now exceeds $978 million, according to a court filing.
Previously undisclosed, @properties will pay $6.65 million while Realty One will pay $5 million. The totals for Compass ($57.5 million), Real ($9.25 million) and Douglas Elliman ($7.75 plus up to $10 million more in contingent payments) remain the same as originally announced.
Request for preliminary approval: Meanwhile, the request for preliminary approval of the Redfin and Engel & Völkers settlements was filed on July 12. Redfin's $9.25 million settlement was originally announced May 6; the Engle & Volkers settlement for $6.9 million (previously undisclosed) was announced June 19.
"The Settlement Agreements with Redfin and Engel & Völkers provide for meaningful practice changes, cooperation in litigation against non-settling defendants," according to the court document.
NAR denied again: The National Association of Realtors has been duking it out with the DOJ for some time, but on Friday was hit with the latest blow.
The case was originally settled back in 2020 but has gone through a tug-of-war over what the phrase "has closed" means when it comes to renewing an investigation into the association.
NAR has contended that the case cannot be reopened, while the DOJ has said the phrase was a backward-looking statement and NAR was seeking a forward-looking commitment, something the federal agency said it did not give.
The next potential step, if the NAR wants to pursue this further, is to ask the U.S. Supreme Court to review the case. In the meantime, the DOJ can pursue its case.