In a landmark decision that has sent shockwaves through the real estate industry, a $728 million settlement has been reached in one of the most significant antitrust cases in decades.
This massive legal settlement, stemming from the Burnett v. NAR (National Association of Realtors) lawsuit, addresses allegations that real estate companies and the NAR conspired to keep home sale commissions artificially high—a practice that violated antitrust laws designed to protect consumers from unfair business practices.
If you sold a home between 2014 and 2024, you might be entitled to a portion of this substantial settlement. This article provides a comprehensive guide on everything you need to know: who qualifies, how to file a claim, important deadlines, and what this settlement means for the future of real estate transactions in America.
Understanding the Settlement: What Happened?
The real estate commission lawsuit came about after homeowners alleged that the traditional commission structure in real estate was fundamentally anti-competitive.
For decades, home sellers have been obligated to pay not only their own agent’s commission but also the commission for the buyer’s agent—even though the buyer selected and worked with that agent. The plaintiffs argued that this system created an unfair marketplace where sellers had little choice but to pay inflated commission rates.
After years of litigation, a jury in Kansas City, Missouri determined that the NAR and several major real estate brokerages had indeed violated antitrust laws. Rather than face further legal battles, the defendants agreed to settle for over $1 billion in total, with $728 million specifically designated for homeowners who paid these allegedly inflated commissions when selling their properties.
The settlement also requires significant changes to how real estate commissions work going forward, potentially transforming the industry’s compensation model entirely.
Who Qualifies for a Claim?
Not everyone who sold a home during the coverage period will automatically qualify for compensation. To be eligible for a share of the settlement, you must meet the following criteria:
- You sold a residential property between 2014 and 2024.
- The property was listed on a Multiple Listing Service (MLS) affiliated with the National Association of Realtors.
- You paid a commission to both your listing agent and the buyer’s agent as part of the sale transaction.
- You have not already filed a claim for another related real estate lawsuit settlement.
It’s important to note that if you sold a home without using a real estate agent (for example, in a direct sale or “For Sale By Owner” transaction), you likely won’t qualify for compensation since you didn’t pay the commissions that are at the heart of this lawsuit.
How Much Money Could You Receive?
There’s no fixed payment amount per person. The compensation each eligible seller receives will depend on several factors:
- The total commission amount you paid when selling your home.
- The number of valid claims submitted before the deadline.
- Verification of your documentation.
- Administrative costs associated with distributing the settlement.
The settlement administrators will use a formula that factors in the commission rate you paid and the sale price of your home. Generally, those who paid higher commissions on more expensive properties will receive larger payments. However, with potentially millions of eligible claimants, individual payouts may vary significantly.
How to File Your Claim
The claims process has been designed to be straightforward, with two methods available for homeowners to submit their information:
Online Method:
- Visit the official settlement website at RealEstateCommissionLitigation.com
- Complete the digital claim form with details about your home sale.
- Upload supporting documentation, particularly your closing statement.
- Submit the completed form electronically.
Mail Method:
- Download and print the claim form from the settlement website.
- Fill out all required fields by hand.
- Mail the completed form along with copies of supporting documentation to:Burnett v. NAR
c/o JND Legal Administration
PO Box 91479
Seattle, WA 98111 - Ensure your envelope is postmarked by the deadline of May 9, 2025.
Whichever method you choose, be sure to keep copies of all submitted documents and any confirmation notices you receive.
Required Documentation
For your claim to be processed successfully, you’ll need to provide documentation that proves you sold a home during the eligible period and paid commissions. The following documents will typically satisfy this requirement:
- HUD-1 Settlement Statement or Closing Disclosure form from your home sale.
- Sales contract showing commission arrangements.
- Other documentation that clearly shows the commission rates and amounts paid.
If you no longer have these documents, don’t panic. You may be able to obtain copies from:
- Your real estate agent who handled the sale
- The title company that processed the closing
- Your closing attorney
- The mortgage lender that financed the transaction
Many of these professionals maintain records for several years and should be able to provide copies upon request, often at no charge.
Important Deadlines to Remember
The settlement has established strict deadlines that all claimants must adhere to:
May 9, 2025: Final deadline to submit all claim forms and supporting documentation. Claims postmarked or submitted online after this date will not be considered.
August 2025: Preliminary review of claims expected to be completed.
Late 2025/Early 2026: Settlement administrators anticipate beginning distribution of payments, assuming no appeals or delays in the process.
Missing the May 9, 2025 deadline means forfeiting your right to compensation, so it’s advisable to file your claim as soon as possible rather than waiting until the last minute.
Frequently Asked Questions About the Settlement
What if I sold multiple homes during the covered period?
You may file a separate claim for each eligible property sale. Each sale will be evaluated independently based on the commissions paid.
How will I receive my payment?
Claimants will have options for payment, including check, direct deposit, or electronic payment methods. You’ll select your preferred method when completing the claim form.
Will receiving settlement money affect my taxes?
Possibly. Settlement payments may be considered taxable income. Consult with a tax professional regarding your specific situation and any tax implications.
What if my claim is denied?
If your claim is rejected, you’ll receive a notification explaining the reason. You’ll have an opportunity to appeal the decision by providing additional documentation or clarification within a specified timeframe.
Can I check the status of my claim?
Yes. Once you’ve submitted your claim, you’ll receive a confirmation number. You can use this number to check your claim status on the settlement website or by contacting the settlement administrator directly.
What if I already filed a claim for another real estate lawsuit?
If you’ve already filed a claim specifically in this litigation, you do not need to file again. A single claim form covers all eligible settlements. However, if you filed a claim in an unrelated lawsuit, you may still be eligible for this settlement.
Broader Impact on the Real Estate Industry
Beyond the financial compensation for past home sellers, this settlement signals a significant shift in how real estate transactions will work moving forward. The NAR and participating brokerages have agreed to implement several practice changes, including:
- Transparency in commissions: Eliminating requirements that sellers must offer compensation to buyers’ agents to list on the MLS.
- Buyer agency agreements: Requiring written agreements between buyers and their agents before house hunting begins.
- Separation of fees: Allowing buyers to negotiate directly with their agents, rather than having sellers cover these costs.
These changes aim to create a more competitive marketplace where commission rates are determined by market forces rather than industry practices. Some experts predict this could lead to overall lower commission rates, potentially saving future home sellers thousands of dollars.
According to research from the University of Texas at Austin published in the Journal of Finance, “having buyers and their agents negotiate fees directly, instead of having the fees paid to the buyer agent by the seller, can indeed lower overall costs for real estate transactions.”
What This Means for Future Home Sales
If you’re planning to sell a home in the near future, you’ll likely encounter a real estate landscape that operates differently than it did previously:
- You may have more leverage to negotiate commission rates with your listing agent.
- You probably won’t be expected to pay for the buyer’s agent’s commission.
- Buyers will be more involved in negotiating compensation with their own agents.
- There may be more variety in service models and fee structures among real estate professionals.
These changes could make the real estate transaction process more transparent and potentially less expensive for sellers, though some industry experts caution that the full impact of the settlement’s requirements will depend on their implementation and interpretation.
Protecting Your Interests in Future Real Estate Transactions
Whether you’re eligible for the settlement or not, understanding how these changes affect the real estate market can help you make more informed decisions:
- If you’re selling a home: Request clear information about commission structures and what services are included. Consider obtaining proposals from multiple agents to compare offerings and rates.
- If you’re buying a home: Understand that you may now be responsible for compensating your agent directly. Discuss fee structures before beginning your home search and get any agreements in writing.
- For all consumers: Be aware that these changes may lead to new and creative compensation models from real estate professionals. Take time to understand exactly what you’re paying for and what services you’re receiving.
The Path Forward: How the Industry Is Responding
Real estate professionals are adapting to this new landscape in various ways:
Some brokerages are embracing the changes, offering more flexible commission structures and unbundled services that allow clients to pay only for what they need.
Other agents are focusing more on demonstrating their unique value to clients, emphasizing services and expertise beyond simply facilitating transactions.
Industry organizations, including the NAR, are developing new training and resources to help their members navigate this shifting environment while still providing excellent service to buyers and sellers.
Real estate educator and consultant Jane Reynolds notes, “This settlement represents both a challenge and an opportunity for the industry. Those who can clearly articulate their value and adapt their business models will thrive even as commission structures evolve.”
Taking Action: Next Steps for Potential Claimants
If you believe you may be eligible for compensation under this settlement, here’s what you should do immediately:
- Gather your records: Locate closing documents from any home sales between 2014 and 2024.
- Verify eligibility: Check that your sale meets all the criteria outlined in the “Who Qualifies” section above.
- File promptly: Don’t wait until the deadline approaches. Filing early gives you time to address any issues or provide additional documentation if needed.
- Stay informed: Bookmark the official settlement website and check regularly for updates or changes to the claims process.
- Be wary of scams: Remember that legitimate settlement administrators will never charge you to file a claim. Be suspicious of anyone asking for payment to help you file or promising guaranteed amounts.
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