US appeals court upholds big real estate settlement despite class members' objections
Settlement terms and response
The settlement covering tens of millions of class members includes $418 million from the National Association of Realtors, $250 million from Berkshire Hathaway's HomeServices of America, and $333 million in legal fees.
As part of the settlement, the NAR agreed to revamp decades-old rules governing the splitting of agent commissions, which hovered around 5% to 6%. Many buyers and sellers found those commissions too high.
Patrick Knie, a lawyer for some of the objectors, said his clients may appeal to the Supreme Court. He said they weren't allowed to properly raise their objections, and the payout was too low.
"Everyone got next to nothing for the sake of settling," he said. "There's something just not right about that."
The NAR said it was pleased, and would continue efforts to "foster fair, transparent, and pro-consumer real estate markets."
HomeServices Chief Executive Chris Kelly said he was also pleased, and the decision provided "additional certainty" to the company, customers and agents.
