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At the end of 2022, over the objections of the National Association of Realtors and major real estate franchisors, a federal court in Missouri rescheduled a commission trial for what would be the last time, to Oct. 16, 2023.
That trial, for a case known as Sitzer | Burnett, would overshadow the real estate industry in 2023 as its start date approached. Its shocking verdict would reverberate not only through the industry but into the minds of consumers, awakening them to challenge a decades-old industry practice so ingrained many had never thought to question it before.
As the final judgment in that case looms, here’s a look back at how Sitzer | Burnett, and an ever-rising pile of copycat commission lawsuits, unfolded in 2023 — and what they may foretell about the future of the industry in 2024.
2023 started with a NAR win — but it may be short-lived
The year started off with a victory for NAR in yearslong litigation with the U.S. Department of Justice, one of two federal agencies charged with antitrust enforcement. In January, a federal court ruled in favor of NAR in a case seeking to enforce a settlement agreement between the trade group and the DOJ.
The ruling set aside the DOJ’s request for information from NAR on rules regarding buyer broker commissions and pocket listings, among others.
The commission rule at issue, known as the Cooperative Compensation Rule or the Participation Rule, requires listing brokers to offer a blanket, unilateral offer of compensation to buyer brokers in order to submit a listing to a Realtor-affiliated multiple listing service. The rule and its local iterations are the subject of, now, more than a dozen antitrust lawsuits across the country.
The court ruling drew mixed…