US appeals court upholds big real estate settlement despite class members' objections
Settlement terms and parties
The settlement 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.
The settlement saved the industry some money, after a Missouri jury in October 2023 ordered the NAR, HomeServices and the realty Keller Williams to pay $1.78 billion to home sellers who claimed they were overcharged.
Other sizable brokerages, including Brown Harris Stevens, were allowed to join the settlement and provide additional cash if they changed their business practices. More than 2 million class members submitted claims.
