One week after it announced a $250 million settlement agreement to resolve concerns raised over real estate agent commissions, HomeServices of America, the real estate brokerage unit of Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A), is facing a new class action lawsuit over the same issue.
The new lawsuit was filed in a Miami federal court and is seeking at least $5 million in damages. The lawsuit was filed on behalf of James Lutz, a Colorado resident who purchased a home in Key Colony, Florida, in 2021 using a broker-agent affiliated with HomeServices. The broker-agent is not a defendant in the lawsuit, which seeks class action status that would encompass buyers nationwide who acquired MLS-listed homes since Dec. 1, 1996.
“Because of the scope and magnitude of the overcharges at issue here, the economic cost to the plaintiff classes and other consumers is enormous,” the lawsuit stated.
HomeServices Executive Vice President Chris Kelly questioned why the lawsuit was being filed after the company had already agreed to a settlement related to the structuring of commissions.
“While we are just beginning to analyze this buyer antitrust case that was filed immediately on the heels of our settlement of the Burnett action, we maintain our position that HomeServices’ conduct and business practices were at all times lawful and procompetitive,” said Kelly. “We also note that Plaintiffs’ theory of damages in this follow-on lawsuit is directly at odds with the damages theory accepted by the jury in the Burnett case and could potentially result in a duplicative recovery that would be unfair, unjust, and violative of HomeServices’ rights.”
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This entire lawsuit, as I am a Realtor is the most absurd in my lifetime. SHOULD NEVER have made it to this level and am ANGRY that RE companies and NAR did not fight this to the bitter end. IT IS WRONG AND AT NO LEVEL HAVE REALTORS OR COMPANIES DONE ANYTHING WRONG. TIME WE GO ARecent Reviews
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5/4/2023
Melanie really knows the market well to sell! She was so helpful in all aspects of selling and helped us with finding the estate sale company we chose. Personally, Melanie is warm, empathetic and AFTER THE ATTORNEYS IN OUR COUNTRY THAT VIOLATE ANTT-TRUST WITH THEIR FEES
this was the bitter end.
Melanie, as a realtor here in Central Oregon I completely agree with you. NAR should have fought this until the bitter end!!!!! These lawsuits are frivolous in my opinion.
I agree 100% with you Melanie! I feel like we (Realtors) were thrown under the bus. And so, everyone understands all Realtors pay a yearly fee to NAR between $550-$600. As far as support and clarification as to how Realtors are paid, I feel there was no explanation whatsoever. I have always conveyed to all sellers and buyers the commission is negotiable.
I agree, with Melanie and Corinne,
We were thrown under the bus. What are are fees for?
I haven’t seen any webinars about this major change and how we can negotiate our commission when we work with the buyers.
100% factual. Sellers were never forced to pay buyer commissions. This lawsuit is unjust and the only winners are the greedy lawyers. Buyer become Sellers and Sellers become buyers. It’s a wash!
Attorneys don’t generate new income. They grab other people’s money. Realtors are paid for services rendered, then spend it in the economy. Commissions have always been negotiable. Are lawyer fees negotiable? Rarely. Are auto salespeople any different? Is Open Table going to pay back all the fees? Let’s talk about credit card fees….
Lawsuit should never have been settled. Absurd what was litigated. Realtors got screwed by the people that were paid to protect them. Dissolve NAR THEY ARE USELESS
I agree Brian. I also blame NAR for caving to Zillow, Realtor.com & all of the “pay for leads” sites that have had their hands in realtor pockets for years!
NAR became a victim of their own success. If you’ve got a business plan or platform that’s so in demand by consumers that all other competitors are eliminated then by definition you are guilty of monopolistic practices. The fact that you’ve achieved this status by providing a service so superior that 95% of the consumers want it is apparently not relevant.
I think the lesson here is that industry “trade associations” are at risk of lawsuits for a variety of anti competitive accusations.
I’m old enough to remember the industry before universal MLS. The buyer had to visit multiple brokers to cover all sale properties in a given area; the seller’s never got total buyer market coverage and were at the mercy of the ability, time allotment, and motivation of the broker they listed with. MLS became dominant because it was infinitely better for both buyer and seller.
Is the current system perfect? No, but this is an example of throwing the baby out with the bath water.
Totally agree that this is an absurd lawsuit that shouldn’t have made it to first base. And maybe it’s time for the NAR to be revamped and actually be of help instead of caving in to ridiculous lawsuits!