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RE/MAX paying $55M to settle brokerage commission lawsuits
invite response
2023 Sep 20, 8:49am 245 views 3 comments
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1
zzyzzx
2024 Feb 6, 9:07am
zzyzzx
2024 Feb 6, 9:07am
https://www.dailymail.co.uk/yourmoney/housing-market/article-13047183/real-estate-fees-settlement.html
Real estate brokerage to pay $70 MILLION to settle nationwide lawsuits over grossly inflated broker's fees - has the bubble burst for greedy realtors?
Real estate brokerage to pay $70 MILLION to settle nationwide lawsuits over grossly inflated broker's fees - has the bubble burst for greedy realtors?
3
WookieMan
2024 Feb 6, 3:53pm
WookieMan
2024 Feb 6, 3:53pm
UkraineIsFucked says
This is correct. Errors and omissions insurance covers it all anyway. Smart realtors know what they are and build walls around them if they're successful. I was one. No way I'd ever come out of pocket for something shady. It wasn't out of my pocket either as I was an employee. So I was covered.
It's the house wife brokers that should scare the living shit out of you besides a few successful ones. They don't know how to negotiate without being a bitch. You'll lose a deal because of them. Voicemails and emails are all easily sharable with a client. Women are the worst. You have to know your industry and how to play men. I wouldn't work with 9 out of 10 women agents. Unless you're getting laid and aren't married. Even then a bad decision.
zzyzzx says
has the bubble burst for greedy realtors?
No. Hell will freeze over before that happens
This is correct. Errors and omissions insurance covers it all anyway. Smart realtors know what they are and build walls around them if they're successful. I was one. No way I'd ever come out of pocket for something shady. It wasn't out of my pocket either as I was an employee. So I was covered.
It's the house wife brokers that should scare the living shit out of you besides a few successful ones. They don't know how to negotiate without being a bitch. You'll lose a deal because of them. Voicemails and emails are all easily sharable with a client. Women are the worst. You have to know your industry and how to play men. I wouldn't work with 9 out of 10 women agents. Unless you're getting laid and aren't married. Even then a bad decision.
Brokerage also agrees to change its business practices.
RE/MAX will cough up an eight-figure sum to extricate itself from two class-action lawsuits over agent commission payments.
The company agreed on Friday to pay $55 million to settle the claims filed in Kansas City and Chicago, according to a document filed with the Securities and Exchange Commission.
If approved by the judges in each case, the settlement would remove RE/MAX from the landmark lawsuits without holding the company responsible for claims outlined in them. The lawsuits, known as Sitzer/Burnett and Christopher Moehrl, allege the brokerages violated the Sherman Antitrust Act by colluding with the National Association of Realtors to inflate commissions paid by home sellers.
The agreement also commits RE/MAX to making “certain changes to its business practices,” according to the SEC document filed Monday. Among the changes is to no longer require sellers to pay buyer’s agents’ commission, Michael Ketchmark, one of the lead attorneys in the Sitzer/Burnett told Inman.
A spokesperson for the company denied the allegations in the lawsuits and noted that the agreement was reached “after carefully considering the significant risks and costs associated with continued litigation,” according to an emailed statement.
“The settlement paves the way for a clear path forward for the RE/MAX brand, its franchisees and its agents, removing the uncertainty of ongoing litigation related to these cases,” the spokesperson wrote.
Attorneys for the plaintiffs in each case did not immediately respond to requests for comment.
Other brokerages named as defendants include Keller Williams, Anywhere Real Estate and HomeServices of America, along with the National Association of Realtors.
Anywhere, the parent company of Corcoran, Coldwell Banker, Century21 and Sotheby’s International Realty, agreed this month to pay $83.5 million to settle the lawsuits. The firm also agreed to stop mandating sellers pay commissions for the buyers’ agents.
The U.S. Court of Appeals also ruled last month to bring back a lawsuit related to pocket listings. The lawsuit claims the trade group and two other associations violated antitrust laws by mandating listing brokers submit a property to their MLS within one day of marketing a home.
Earlier this summer, the Department of Justice took steps to relaunch its probe into NAR. The agency filed an appeal brief in June arguing against a January court decision that barred it from reviving its investigation into the trade group’s policies on pocket listings and broker commissions.