HomeServices previously agreed to pay $250 million to settle various commission lawsuits. A final approval hearing is scheduled for November.
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American HomeServices’ major commission lawsuit settlement, first announced in April, moved forward Thursday after preliminary approval by the judge overseeing the case.
In an eight-page filing, Judge Stephen Bove wrote that the settlement was “fair, reasonable and adequate” and was negotiated in good faith. Baugh’s approval came one day after the home seller plaintiffs in the case filed an 86-page motion asking a judge to approve the settlement. The filing outlines terms of the settlement, which include HomeServices paying $250 million and making various changes to its business practices.
Boff is scheduled to hold a final approval hearing on Nov. 26, the same day as the final approval hearing for the settlement with the National Association of Realtors. Real Estate News first reported HomeServices’ preliminary approval.
HomeServices’ settlement applies to multiple cases, including those named Moehrl and Sitzer|Burnett. The company is the last major brand named in Sitzer | The settlement in the Burnett case follows settlements between Anywhere Real Estate and RE/MAX in September and Keller Williams in February. The National Association of Realtors announced its own settlement in March.
Plaintiffs filed a motion earlier this week that proposed payments totaling $980 million in the various settlements.
The settlement came after a trial last October concluded that NAR and major real estate brands conspired to drive up consumer costs and violated antitrust laws. The problem lies in the way agents are compensated, specifically the NAR policy known as the cooperative compensation rule. Following that trial, many other home sellers and home buyers filed similar lawsuits across the United States
In addition to payments from major brands and NAR, the settlement also results in new rules for how agents conduct business. These rules include prohibiting seller’s agents from providing compensation to buyer’s agents in the NAR-affiliated Multiple Listing Service.
The rule will take effect on August 17, but as of last week, there were still many questions and varying interpretations.
Read Judge Boff’s order granting preliminary approval:
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