Since the juror delivered the Sitzer/Burnett verdict on October 31, 2023, two more class action lawsuits have been filed.  The first, Gibson, was filed on October 31st by the same attorneys who represented a group of home sellers in the Sitzer/Burnett.  The main differences are that Gibson was filed in a U.S. District Court instead of a state court and the lawsuit named a new group of major real estate corporations as defendants in addition to the National Association of REALTORS®.  If authorized by the court, this lawsuit would include home sellers throughout the country who listed and sold a home with a defendant in a Multiple Listing Service that was affiliated with the National Association of REALTORS® from October 31, 2019, until the present.  Unlike the Sitzer/Burnett case, the plaintiffs are seeking both damages and an injunction to prevent enforcement of the mandatory offer of compensation rule.

The second lawsuit, Batton 2, is an amended version of another lawsuit, originally called Leeder, which was dismissed and amended with a new lead plaintiff.  The latest complaint was filed by buyers rather than sellers and includes similar claims.

On November 2^nd, this revised lawsuit was filed in a federal district court in Illinois by a different group of attorneys who represent buyers who purchased a home that was listed in an NAR-affiliated Multiple Listing Service.  Unlike the other lawsuits, this names major real estate corporations but not the National Association of REALTORS®.  If allowed by the court, this lawsuit would allow buyers across the country to join the lawsuit.

The attorneys have asked the court to allow them to include buyers who purchased residential real estate since December 1, 1996, that was listed on an MLS affiliated with NAR.  The plaintiffs are asking for damages and an injunction to prevent enforcement of the mandatory offer of compensation rule. The lawsuit includes claims under federal and certain state antitrust laws.

Please be advised that the Rhode Island Association of REALTORS will continue to review the allegations and the developments in these cases closely to make sure we report accurate information to you. After attending the NAR Annual Conference next week, we will be holding a webinar on Tuesday, November 21st from 9:30 to 10:30 am, to share what we know to date and to answer members’ questions. In the meantime, in accordance with RIAR/MLS rules and policies, please reinforce to your peers, the following RIAR, and State-Wide MLS guidance:

For REALTORS®

-Never refer to a “standard” commission or “standard” split. Compensation is negotiable.

-Check your social media, marketing, policies, and training materials to make sure that they do not refer to “standard” compensation.

-Set compensation independently.   Never compare notes with real estate licensees from other brokerages about what they plan to charge or pay.

For Cooperating Brokers 

-Clearly explain your services to buyers.

-Never market your services as free unless you truly plan to receive zero compensation from anyone.

-Clearly explain how you are paid and by whom. 

For Listing Brokers

-Clearly explain your services to sellers.

-Clearly explain the role of a cooperating broker.

-If you plan to compensate a cooperating broker, explain how this benefits the seller and how the cooperating broker will be paid.