Real Estate Commission Rebate Lawsuit Settlements: Opt Out, Take Action

Attorneys working with ClassAction.org believe recent class action settlements over real estate commission fees may be paying out less than consumers are owed, and they’re now looking to represent home sellers who want to file their own lawsuits.

Recently, a handful of settlements were reached to settle class action lawsuits that claimed major real estate brokers and a trade association implemented illegal and anticompetitive rules requiring home sellers to pay commissions to buyers’ agents and brokers. The attorneys believe the real estate commission settlements, totaling $980 million, are far less than the $40 billion that the lawsuits claimed consumers are owed due to the defendants’ allegedly anticompetitive conduct.

The attorneys believe home sellers may be able to recover more by opting out of the settlements and filing their own lawsuits—and they now want to speak with individuals who are interested in continuing the fight instead of accepting their real estate agent commission rebate. Signing up and filing a case is a quick and simple process—all you’ll need to do is fill out a few forms and your attorney will handle the rest.

Am I Signing Up for a Real Estate Commission Class Action Lawsuit?

No, you would be hiring an attorney to file an individual lawsuit on your behalf against some of the major players in the real estate industry. It’s a quick and simple process: after you sign up, your attorney would ask you a few questions about the house you sold, assist you with opting out of the real estate commission settlements (by filling out a few quick forms), and would then move forward with the litigation process, including filing a complaint (the document filed with the court that begins a lawsuit), collecting documentation, filing briefs and motions with the court, meeting with defense counsel, and possibly negotiating a settlement on your behalf or, more rarely, taking your case to trial.

What Does It Mean to Opt Out of the Real Estate Commission Lawsuits?

In most class action settlements, the people covered are automatically included in the settlement whether they file a claim or not. Generally, everyone included in the “settlement class”—i.e., the people eligible to participate—automatically releases their right to sue the defendants over the claims at issue in the lawsuit.

When you opt out or exclude yourself from a settlement, you are choosing not to participate. This means you will not get any benefits from the settlement, but you will also retain your right to file a lawsuit over the claims covered in the case.

How Much Does This Cost?

It costs nothing to sign up, and the attorneys are working on a contingency fee basis, meaning they will only be paid if they win your case. Their payment will come as a percentage of the amount you win.

If they don’t win your case, you don’t pay.

How Much Will I Get?

There are no guarantees that your case will be successful. However, the attorneys believe that home sellers may be able to recover much more than what the settlements are likely to pay. 

What About People Who Already Filed Claims in the Settlement?

The attorneys believe that even if you already filed a claim, you can still opt out of the settlement and file your own lawsuit. Just be aware that if you opt out, you will not get a real estate agent commission refund from the settlement.

Real Estate Commission Fees Lawsuit Settlements Info: 2024 Update

Several real estate commission fee settlements were reached in late 2023 and early 2024 to resolve a handful of class action lawsuits.

The real estate lawsuits alleged that several of the major real estate brokers, including RE/MAX, Berkshire Hathaway, Keller Williams and others, and trade association National Association of Realtors (NAR) engaged in anticompetitive conduct that caused real estate agent commissions to be too high. Essentially, the cases claimed rules requiring home sellers to pay a commission to the buyer’s agent or broker upon selling their house were illegal and violated antitrust laws.

The deals include a rules change to how commissions are advertised. Essentially, the requirement that home sellers must offer to pay commissions to the buyer’s agent was eliminated; as of August 2024, listing agents can no longer advertise real estate agent fees when a home is listed on the multiple listing service.

The real estate commission settlements also allow people who sold their homes during certain date ranges and paid commissions to a real estate agent to file a claim for a share of the settlement fund. Attorneys working with ClassAction.org estimate that, based on similar settlements, participation rates and available information, each claimant may receive an average of roughly $208.

According to the real estate commission lawsuit settlement website, a final approval hearing for some of the settlements has been scheduled for November 26, 2024.

Before commenting, please review our comment policy.