Real estate brokerage Keller Williams will pay $70 million under a proposed settlement to more than a dozen lawsuits related to agent commissions. It would also be required to increase transparency for homebuyers and sellers into commission amounts.
The lawsuits accused multiple large real estate brokerages of artificially inflating commissions and forcing homeowners to pay them upon selling their home.
As part of the settlement, Keller Williams agents must inform clients that commissions are negotiable and there is no minimum amount required by the brokerage or by law. Agents must also inform prospective buyers about their compensation structure, including “cooperative compensation” from the seller’s agent.
In October, a federal jury found the National Association of Realtors and several large brokerages violated federal antitrust law by conspiring to require home sellers to pay homebuyers’ agent commissions. The defendants were ordered to pay damages of almost $1.8 billion, which could translate to more than $5 billion if treble damages are awarded. Meanwhile, more than a dozen similar lawsuits remain pending.
