Real estate brokerage Compass agreed to pay $57.5 million in class-action lawsuit settlements from U.S. home sellers on Friday. The antitrust lawsuits allege that the corporate conspired with other brokerages and trade groups to overcharge home sellers by billions of dollars.
According to the Associated Press, the plaintiffs claim that real estate brokers have been forcing home sellers to pay “artificially inflated” commissions to agents.
Homeowners had to include a compensation offer for buyer’s agents when listing properties for sale on real estate industry databases, as per The Guardian. Not including the offer could allegedly lead to buyer’s agents steering their clients away from the listing.
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Compass didn’t admit to any wrongdoing and stated that the settlement wouldn’t affect its operation, per The Real Deal.
“The explanation now we have chosen to settle is so we are able to minimize distractions and give attention to serving you and your clients,” said CEO Robert Reffkin in an emailed statement obtained by the outlet.
Compass joins Anywhere Real Estate, Keller Williams, and RE/MAX in proposing a settlement. The opposite three major brokerages agreed to pay a combined $209 million, according to reporting from The Real Deal.
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As per the identical outlet, Compass’s proposed settlement includes practice changes like creating training materials and refining communication with agents about commissions, that are similar to the opposite firms’ agreements.
Last week, the National Association of Realtors finalized a $418 million class motion settlement that removed sales commission rules for brokers and agents.