The class action lawsuit filed by plaintiff James Lutz accuses HomeServices and other members of the National Association of Realtors of fixing commissions, misleading buyers and causing them to pay exorbitant prices.
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Unlike most of the commission lawsuits filed by home sellers in recent months, homebuyers filed a new class action lawsuit in Florida on Monday against HomeServices of America Inc. and the National Association of Realtors. Other members fix commissions, misleading buyers and causing them to pay exorbitant prices.
In February, Illinois homebuyers filed a similar case called Batton 1 against the company, but HomeServices was dismissed from the case because none of the company’s members were located in Illinois and the plaintiffs did not allege that the company was assertion of authority nationwide.
The lawsuit filed Monday in the U.S. District Court for the Southern District of Florida names as a plaintiff James Lutz, who purchased a home in Key Colony, Florida, in 2021 using a property owned by Buyer’s agent for Berkshire Hathaway HomeServices, one of the home services companies of Berkshire Hathaway HomeServices. The lawsuit is seeking a class action that includes buyers nationwide who purchased MLS-listed homes since December 1, 1996.
“For decades, homebuyers across the United States have unknowingly paid too much for services provided by defendants and other real estate agent members of the National Association of REALTORS (‘NAR’),” the complaint reads. “There were far too few services available there, despite the agent’s representation (that NAR allowed and encouraged) that such services would come at no cost to the homebuyer,” the homebuyer actually paid a high cost for these services – Defendant NAR determined. of ultra-competitive commission levels; and other real estate agents, which in turn results in buyers paying higher home prices.
The lawsuit goes on to allege that the cost to consumers of the so-called fixed prices is “substantial,” claiming that “experts have suggested that if there were effective prices, consumers might save on ‘annual broker fees'” that compete annually by as much as $30 billion or more.
Chris Kelly (Image: Ebby Halliday)
HomeServices, meanwhile, denies any wrongdoing or anticompetitive behavior and argues that the alleged damages are inconsistent with those asserted and accepted by the Burnett jury, real estate news reported.
“While we have just begun analyzing this buyer antitrust case filed immediately following the settlement of the Burnett lawsuit, we maintain our position that HomeServices’ conduct and business practices were lawful and pro-competitive at all times,” American HomeServices Executive Vice President Chris Kelly told real estate news.
“We also note that the plaintiff’s theory of damages in subsequent litigation is directly inconsistent with the theory of damages accepted by the jury in the Burnett case and may result in duplication of damages, which is unfair, unjust and in violation of the Family Services Act ‘s right,” Kelly added.
The lawsuit also takes issue with NAR’s “free services rule,” which was eliminated in 2022 and which allowed buyer’s agents to provide services for free in the past. The client or client represents that their brokerage services are free of charge or provided to the client at no charge, except that the participant or subscriber will not receive financial compensation from any source for these services.
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