The Department of Justice (DOJ) is turning up the heat on the National Association of Realtors (NAR) and the real estate industry at large. In a Statement of Interest filed in the class-action lawsuit Burnett v. NAR, the DOJ highlighted ongoing concerns about antitrust practices that could harm buyers, sellers, and competition within the real estate market.
The DOJ took particular aim at the current practice of unilateral offers of compensation to buyer brokers. These practices, the filing explains, pressure sellers to offer high commissions—often 2.5-3%—to buyer brokers to avoid “steering,” ultimately driving up home prices. This arrangement benefits neither buyers nor sellers, as it limits competition among brokers and prevents meaningful negotiations on fees.
Another area of concern is a proposed settlement provision requiring buyers and brokers to sign written agreements before any home tours. While intended to add transparency, the DOJ warns it could hinder competition among buyer brokers, making it harder for buyers to explore their options freely.
Importantly, the DOJ has not endorsed the proposed settlement in this case. Instead, it reserves the right to continue investigating and enforcing antitrust laws. Compliance with the settlement will not shield NAR or other entities from future legal scrutiny.
The DOJ’s filing serves as a reminder that transparency, competition, and fair practices are essential to keeping the real estate market accessible and equitable for everyone. For buyers, sellers, and agents alike, this case underscores the importance of choosing representation that prioritizes their interests over outdated or self-serving industry norms.
