The Real Brokerage Inc. (NASDAQ: REAX) announced a $9.25 million settlement agreement to resolve the pending class action litigation in one of the post-Sitzer/Burnett copycat lawsuits regarding the commissions paid to real estate professionals.
Under the terms of the settlement agreement, the company will pay the settlement fee into a qualified fund within 30 days following the court’s preliminary approval of the agreement. The settlement addresses all claims asserted against Real in Umpa v. NAR, 4:23-cv-00945 (W.D. Mo.), on a nationwide basis, and the company said in a press statement this resolution “does not constitute an admission of liability by Real, nor does it concede or validate any of the claims asserted in the litigation.”
The company added the settlement involves the implementation of changes in Real’s business practices, including “clarifications about the negotiability of commissions, prohibitions on claims that buyer agent services are free, and the inclusion of listing broker compensation offers in communications with clients. Real will also develop training materials to support these practice changes.”
;
Vultures are packaging the real estate industry perfectly for government takeover.
The government will now be the arbiter of consumer complaints.