american family services One step closer to getting out of a home seller commission lawsuit. On Thursday, Judge Stephen R. Bough, who oversees the Sitzer/Burnett and Gibson/Umpa commission cases, gave preliminary approval to the brokerage’s settlement.
“The Court finds that the proposed settlement with HomeServices as set forth in the Settlement Agreement is fair, reasonable and adequate, that the Class Representative adequately represents the Class, and that the Settlement Agreement was negotiated fairly and with good faith by experienced counsel, and The settlement was reached through these negotiations; at this stage of the litigation there is ample opportunity for discovery and for experienced counsel to evaluate the claims and risks; the court may approve the settlement under the rules, Baugh wrote in the order.
HomeServices of America announced in late April that it had reached a settlement with the Sitzer/Burnett plaintiffs and agreed to pay $250 million as part of the deal.
A final approval hearing for the settlement is scheduled for November 26, 2024, the same date as the final approval hearing for the settlement agreement. national association of realtors (nar).
“We are very pleased to work with the plaintiffs’ representatives to submit our executed settlement agreement and receive preliminary approval from the court,” said Chris Kelly, executive vice president of American HomeServices. house line in an email.
“Our firm and agents have put in a significant effort to update our forms and practices in anticipation of the business practice changes taking effect later this month. We believe that as the industry adapts to these changes, the buyers and sellers we serve will Will have a smooth and positive experience.
In October 2023, a jury in Kansas City, Missouri, found that NAR and brokerage firms conspired to inflate or stabilize commissions through NAR’s rules of engagement, which require listing agents to compensate buyer’s agents. The jury awarded $1.76 billion in damages, which could have tripled to $5.4 billion. That sparked dozens of copycat cases filed in other states and a series of settlements reached over the winter and spring.
According to the latest data, HomeServices of America is the third largest brokerage firm in the United States in terms of transaction parties, and its transaction volume will reach 235,861 transactions by 2023. Real trends verified Ranking. The Minnesota-based company had sales of $133.8 billion last year, trailing only compass, Consultant anywhere and Exp Properties.
