The court denies NAR’s request for rehearing of the DOJ investigation case
The US Circuit Court of Appeals in Washington DC on Friday rejected a request from the US court National Association of Real Estate Agents (NAR) for a reiteration of the court’s previous ruling that the Department of Justice (DOJ) may reopen an investigation into the trade association.
The legal wrangling over reopening the DOJ investigation has been winding through courts dating back to the Trump administration. In November 2020, the DOJ agreed to close its investigation into NAR after reaching a settlement agreement on the antitrust investigation into NAR’s role in buyer agent compensation.
But in July 2021, the Biden administration withdrew the settlement and reopened the investigation. After legal objections from NAR, a three-judge panel in DC ruled in April 2024 that the DOJ could reopen its investigation. NAR petitioned for a rehearsal in May, but was officially shot down as of Friday.
“This ruling violates years of precedent in the interpretation of government contracts and the fundamental principle that the government must keep its word,” a NAR spokesperson said. HousingWire in an email. “We are evaluating all remaining legal options and are committed to exploring all options to ensure that the DOJ adheres to the terms of our 2020 agreement.”
During the legal proceedings related to the DOJ investigation, NAR reached a settlement in March in a class-action lawsuit filed in Missouri, agreeing to pay out $418 million to home sellers over four years. NAR also agreed to change or modify some of its rules, most notably removing the requirement for buyer agent compensation offers for multiple listing services. The new rules come into effect on August 17.
Since the settlement of the Missouri case, numerous copycat lawsuits have been filed across the country and remain in various stages of legal proceedings. These lawsuits have ensnared some of the country’s largest real estate agents Anywhere, Keller Williams And RE/MAX.
The denial of NAR’s rehearing request wasn’t the only news Friday involving the DOJ and broker associations.
The California Association of Realtors announced that it will release new forms for its members on July 24. The announcement came weeks after the DOJ launched a formal investigation into the association over its forms, saying it was concerned about whether the forms contained loopholes that would allow brokers to bypass the new forms. rules that come into effect next month.
