GREENVILLE, SC (FOX Carolina) – A lawsuit filed in the upstate alleges that one of four major real estate companies inflates its commissions and that home sellers should not pay them in full. He has been accused of doing so.
“The allegation is that they all collectively agreed to make the seller, the seller of the home, pay a commission to the buyer’s agent, who is essentially the buyer’s agent,” attorney Matt Seeley said. ” he said. And that’s our position, well, it’s just wrong. It is wrong to force the seller to pay the price to the person who is negotiating against you. ”
Attorneys Matt Seeley and Pat Nee filed the lawsuit on behalf of Shawntel Barton, who sold her Spartanburg County home through Keller Williams. “But essentially, it requires sellers to pay their buyer agents. And by making it public, they make sure everyone pays a 6% commission, and the buyer’s agent pays a flat fee.” That’s what we did,” Matt said.
They believe sellers should be able to negotiate the commission they pay to the buyer’s agent.
Real estate agent Tommy Choi does not consent to the lawsuit. “It’s going to be a real challenge to be able to represent consumers and ensure that they have a business and a livelihood to support their families,” he said.
He believes the changes could add extra stress when buying a home. He said the changes could have a dramatic impact on first-time home buyers who need to come up with extra cash to buy a home.
The lawsuit alleges that the National Association of Realtors’ clear cooperation policy is at the root of the conspiracy allegations. The report cites a National Association of Realtors handbook that says real estate agents have the right to know how much they will be compensated before agreeing to be involved in the sale or purchase of a home. This means that the seller’s broker must include the fee when he lists the item on the Multiple Listing Service (MLS) within one business day.
Cuney said, “In every other area of our economy, we are a free market country.” Only the real estate sector has declared that You can’t do that under the Sherman Antitrust Act. And the real estate industry should not be treated any differently than any other industry in the United States. ”
The case, filed in South Carolina, is similar to one filed in Kansas City, Missouri, where a judge found the National Association of Realtors and two brokers liable for nearly $2 billion in damages. was lowered. Conspiring to keep fees artificially high. The Missouri case was called Barnett v. National Association of Realtors et al.
Those companies are Keller Williams Realty and HomeServices of America. The other two companies named in the Missouri lawsuit, Re/Max and Anywhere Real Estate (formerly known as Realogy), have settled out of court. Re/Max and Anywhere Real Estate have agreed to no longer require agents to be members of the National Association of Realtors.
The verdict in the Kansas City case sent ripples across the country.
“And my reaction is just pure disappointment, because that judgment, that lawsuit, is basically against me as a real estate agent, and it’s an attack on the American dream,” Choi said. Told. And this ruling is a real setback for consumers and future homeowners. And in fact, this is an attack on private property rights. ”
While the Kansas City lawsuit focused on multiple brokerage firms, the lawsuit filed in South Carolina focused on only one company.
Cuney said, “At the end of the day, we represent Ms. Burton, and she clearly sold her home through Keller Williams.” We have other clients who have sold their homes through other major real estate companies.” Hopefully, we can definitely sue, or someone else can sue on their behalf.”
We also reached out to Keller Williams regarding this lawsuit. In response, a spokesperson said, “We comply with laws regarding cooperation funds and will vigorously defend against this lawsuit.”
They also said that “cooperative compensation offers remain negotiable and at the discretion of the seller.”
Regarding the Kansas City lawsuit, a spokesperson said, “We have strong grounds for appeal and are focused on next steps.”
If you are interested, you can read the full text of the lawsuit filed in South Carolina below.
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