A federal judge must approve the settlement before it takes effect. Despite this, the National Association of Realtors (NAR) has reached a settlement in a litigation case that accused the real estate group of artificially inflating real estate commissions. This settlement could potentially impact how much consumers pay during real estate transactions.
The NAR, which represents 1.5 million real estate agents nationwide, has agreed to pay $418 million over four years to settle several cases. Additionally, they have agreed to change the rules that plaintiffs claimed supported 5 to 6 percent commissions paid by home sellers. However, despite settling, the association maintains that it did not engage in any wrongdoing.
Nykia Wright, the interim CEO of NAR, stated that while there may not be a perfect outcome, continuing to litigate would have been detrimental to the members and their small businesses. She believes that the settlement is the best outcome possible given the circumstances. Wright emphasized that this agreement is a step forward for an industry that makes up nearly one fifth of the American economy.
