A jury in New Jersey has found a real estate company liable for inflating their commission rates and awarded damages of $1.78 billion. The suit was brought against the National Association of Realtors (NAR) by the State of New Jersey in 2018.
The lawsuit alleged that since 1964 the NAR has engaged in anti-competitive conduct which has resulted in homebuyers paying unfair and excessive fees. The lawsuit also claimed that the NAR had trained and encouraged its real estate agents to use the inflated pricings.
The NAR argued that the State could not prove that its actions had caused a monopoly in the market or that the fees were higher than they should have been. However, the jury found in favor of the state with the damages awarded being based on the total estimated difference between the actual and inflated fees.
The decision could have far-reaching implications for the real estate industry and could lead to lawsuits against other companies in the industry. Homebuyers may also benefit from lower fees going forward.
The NAR have dismissed the verdict, claiming that it is legally misconceived and is planning to appeal. In a statement released the day of the verdict they stated that “Real estate commissions are openly negotiated between buyers and sellers and are not regulated by the government”.
It remains to be seen how this decision will impact the real estate industry and whether it will be upheld on appeal. For now, homebuyers who have felt the effects of inflated fees for years should rejoice in the news that a jury has found in their favor.
A jury in New Jersey has found a real estate company liable for inflating their commission rates and awarded damages of $1.78 billion. The suit was brought against the National Association of Realtors (NAR) by the State of New Jersey in 2018.
The lawsuit alleged that since 1964 the NAR has engaged in anti-competitive conduct which has resulted in homebuyers paying unfair and excessive fees. The lawsuit also claimed that the NAR had trained and encouraged its real estate agents to use the inflated pricings.
The NAR argued that the State could not prove that its actions had caused a monopoly in the market or that the fees were higher than they should have been. However, the jury found in favor of the state with the damages awarded being based on the total estimated difference between the actual and inflated fees.
The decision could have far-reaching implications for the real estate industry and could lead to lawsuits against other companies in the industry. Homebuyers may also benefit from lower fees going forward.
The NAR have dismissed the verdict, claiming that it is legally misconceived and is planning to appeal. In a statement released the day of the verdict they stated that “Real estate commissions are openly negotiated between buyers and sellers and are not regulated by the government”.
It remains to be seen how this decision will impact the real estate industry and whether it will be upheld on appeal. For now, homebuyers who have felt the effects of inflated fees for years should rejoice in the news that a jury has found in their favor.
