By Andy Medici | Phoenix Business Journal
A class-action lawsuit involving some of the biggest names in real estate could upend the longtime dynamics of the housing market, especially when it comes to how brokers get paid.
At the heart of the lawsuit, filed in 2019 by a group of people who have sold their homes since 2015, are claims that sellers paid more than they should have in commissions. The allegation is based in a complex web of rules and policies that requires those selling a home to pay the buyer-broker through a commission. Plaintiffs claim the setup keeps commissions higher than necessary because of the risk of losing potential buyers.
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“Certifying the plaintiff’s class action status allows the Court to adjudicate the same issues of law and allocate any recovery amongst the class members. To prevail, the class must successfully argue that the commission practices are anti-competitive.” – Sarah Sladick, litigator at Rose Law Group.
