Realtor Fees Lawsuit: Diaz Vs. Nar – Antitrust Allegations

What the instance is about: John Diaz, who operates a domestic brokerage in Modesto, California, submitted a suit June 9 against the National Association of Realtors, Lodi Organization of Realtors, Central Valley Organization of Realtors and the California Organization of Realtors.

Suit Filed Against Realtor Associations

In the filing, Diaz estimates that thousands of representatives in California “and possibly 10s of thousands country wide” are unable to connect with brokers because of the costs. “Rather, they pick to do no real estate sales.”

In the declaring, Diaz alleges that the subscription fee framework is anticompetitive and in offense of federal antitrust regulation, and challenges NAR’s policy of enforcing fees on brokerage firms for non-Realtor licensees.

Anticompetitive Fee Structure Alleged

Brokers shouldn’t have to pay for non-member agents: The lawsuit additionally challenges NAR’s Variable Dues Solution, which requires broker agents to pay fees for their non-Realtor licensees, even if those agents do not require accessibility to the MLS to do their job.

Fees inhibit participation in the sector: Diaz asserts that the consolidated membership costs for the four associations named in the suit, which complete greater than $1,000 each year, position a substantial monetary worry on property professionals. Therefore, “Several licensees choose to come to be or continue to be inactive in real estate sales for failing to associate with a broker,” the filing states.

Fees Hinder Sector Participation

“Non-member licensees typically work in locations in which Real estate agent membership gives little to no advantage, yet they are incapable to sign up with a Real estate professional member brokerage firm or make a decision not to sign up with a Realtor member brokerage firm because of the monetary barrier,” according to the declaring.

The declaring affirms that the system injures smaller sized broker agents specifically because they can not work with someone to perform features such as Agent Visual Inspections or to work in commercial sales or leasing task without paying member dues. That provides larger, better-funded brokerage firms a boost on staffing, according to the lawsuit. “The outcome is a chilling impact on independent brokerages and a reductions of alternate company designs,” the declaring states.