ReportWire

Tag: Sitzer/Burnett

  • Keller Williams settles Batton class action for $20M  – Houston Agent Magazine

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    Keller Williams Realty agreed to pay $20 million to settle the Batton home-buyer commission lawsuit, which alleges Keller Williams, RE/MAX, Anywhere Real Estate and the National Association of REALTORS® conspired to fix agent commissions and inflate home prices. 

    Keller Williams is the first defendant in the class-action lawsuit to settle. The preliminary, “ice-breaker” settlement, disclosed in federal court in Chicago on Monday, must be approved by a judge. 

    Keller Williams spokesperson Darryl Frost said, “Keller Williams is pleased to reach a nationwide settlement releasing the company — and all of our franchisees and affiliated agents and teams — from antitrust litigation brought by home buyers who purchased residential real estate that was listed on a MLS during the relevant time period.” 

    The plaintiffs argue that buyer agent commissions were inflated by a rule requiring the home seller to pay the buyer-broker commission in a transaction. That rule was dropped as part of the Sitzer Burnett class-action lawsuit settlement in 2024. In that suit, NAR agreed to pay $418 million over four years and amend its rules. The most salient part of that settlement was the removal of commission promises from MLS listings and requiring buyers to sign broker agreements with their agents before any home showings. 

    In response to the Keller William settlement, NAR said it would continue to pursue all legal options in pursuit of an “outcome that best serves members, the industry and consumers.” 

    “We respect Keller Williams’ right to settle these claims and anticipated the possibility they would do so,” NAR said. “NAR remains actively engaged in the Batton joint defense group, and we continue to defend our rules where questioned. Given recent history and the dynamics of this case, NAR continues to pursue all potential resolutions, both non-litigation and litigation, to reach a result that is in the best interest of our members, the industry and consumers.” 

    In an email sent to Keller Williams market leaders, President and CEO Chris Czarnecki said the brokerage decided to settle the lawsuit to eliminate uncertainty for its agents. 

    “We came to the decision to settle with careful consideration for the immediate and long-term well-being of our franchisees and agents and the business model they depend on,” Czarnecki said. “It was a decision to bring certainty and allow everyone at KW to focus on our mission without distractions. It allows us all to turn our attention back to what we do best: delivering unparalleled value in an ever-evolving real estate market.” 

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    John Yellig

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  • NAR issues first Annual Report  – Houston Agent Magazine

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    NAR’s 2026-2028 Strategic Plan.

    The National Association of REALTORS® released its first Annual Report, which details progress the organization says it’s made in accomplishing the 24 goals of its 2026-2028 Strategic Plan, with a particular focus on transparency, broker engagement, financial discipline and legal risks. 

    The 80-page document also explains NAR’s next steps toward fulfilling the initiatives it laid out last year after gathering feedback from members through meetings, surveys and focus groups. 

    “While we have a long way to go in realizing our full vision for NAR, I hope you can appreciate the work we have done to build the foundation for NAR to better serve our members and the industry,” said NAR Immediate Past President Kevin Sears. “We have passed consecutive balanced budgets without raising dues, made our initial payment in compliance with the Sitzer-Burnett settlement terms and identified millions of dollars in savings through a strategic reexamination of our budgets, including our consumer ad campaign strategy and event planning processes. These are just the first steps in setting us up for long-term financial wellness.”  

    Among the most significant changes made so far was dropping the requirement that real estate agents join Realtor associations to access their local MLS. Instead, NAR has left that decision up to local MLSs. 

    The move follows the Sitzer-Burnett antitrust case, which NAR settled or $418 million in 2024. A Missouri jury determined NAR rules forced sellers to pay buyer agent commission in violation of antitrust law. NAR also agreed to bar offers of broker compensation on MLSs and require buyer agents to sign written buyer agreements before touring a home. 

    The report spends a good deal of time laying out NAR’s value proposition to members, noting the new Metro Market Statistics Dashboard, which provides localized market data, and the integration of AI into the Realtors Property Resource. NAR said it provided $1.35 million in free tools and education through its Member Value Plus program and $1 million of free and discounted products through its Right Tools, Right Now program. 

    NAR also took steps to protect the Realtor brand, the report states. These include creating the association’s first dedicated team of in-house trademark attorneys, implementing a seven-stage brand-protection strategy and “proactively educating media outlets about the difference between a REALTOR® and a real estate licensee” through the daily monitoring of news stories for incorrect usage of the Realtor term. 

    The report also outlines steps the association took to get its financial house in order, such as appointing a new CFO, hiring a new audit firm and conducting a top-to-bottom review of its finances “in a post-settlement era.” The report notes that NAR cut its budget expenses by $50 million and reduced its staff headcount by 14%. 

    The report highlights steps NAR has taken to advocate for its legislative priorities, including the promotion of housing affordability, tax incentives and the modernization of capital gains tax law. 

    “This Annual Report represents NAR’s most transparent and comprehensive update on our progress and priorities,” NAR CEO Nykia Wright said. “We’ve sought to provide a deep look at each initiative in the Strategic Plan, including how we made progress towards our commitments in 2025 and how we will seek to implement each initiative in 2026.” 

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    John Yellig

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