NAR's Legal Battle with the Department of Justice

As the National Association of REALTORS® (NAR) awaits the finalization of its March 15 settlement with home sellers, it is now focusing on a renewed legal challenge from the U.S. Department of Justice (DOJ). This could have significant implications for the real estate industry, including for REALTORS® in Las Vegas.

On Monday, NAR filed a petition for rehearing with the U.S. Court of Appeals concerning the DOJ's attempt to reopen an investigation into potentially anticompetitive real estate practices influenced by NAR's rules. This petition follows an April ruling by a panel of judges permitting the DOJ to revisit the investigation. In a swift development, the court has ordered the DOJ to respond to the petition within the next 15 days.

In its latest legal filing, NAR's attorneys criticized the panel's April decision, claiming it diverges from established legal precedents. They argued that the decision would significantly alter the dynamics at the bargaining table. "The panel's errors are far-reaching and exceptionally important. Every day, federal agencies resolve civil and criminal enforcement actions through agreements with private parties. It is a bedrock principle that the government must honor its word in those contracts, no matter who occupies the White House or leads the Antitrust Division," NAR attorneys stated.

The antitrust case, initially settled in 2020 under the Trump administration, was challenged again in 2021 when the DOJ sought to withdraw from the settlement and reopen the investigation. Although this request was initially denied by a district court, the Court of Appeals later reversed that decision. The crux of the legal argument centers on the interpretation of the settlement's wording, specifically whether the case being "closed" implies it can never be reopened.

This case is distinct from the Sitzer/Burnett lawsuit and other claims by home sellers. The rule changes stemming from this settlement are set to be implemented in August, with a hearing to finalize the terms scheduled for November.

The potential reopening of the DOJ's investigation could have widespread ramifications for the real estate industry. In February, the DOJ filed a Statement of Interest in response to the MLS PIN settlement in the Nosalek case, advocating for fundamental changes to commission practices. These arguments could shape the government's case against NAR if the court permits the investigation to proceed.

The outcome of this legal battle could impact commission structures and practices, directly affecting real estate professionals and their clients in Las Vegas. LVR is committed to keeping its members informed and prepared for any changes that may arise from these legal proceedings.

source: https://www.realestatenews.com/2024/05/21/nar-continues-its-battle-to-keep-doj-case-closed