In another milestone regarding law, homeowners across the United States may now be entitled to compensation from a settlement fund amounting to $730 million. Uptake of this settlement fund comes on the heels of several class-action claims against the leading real estate brokerage firms, which include allegations that they inflated commission fees through anticompetitive practices. So if you sold any of your homes between late 2017 and mid-2024, this article is a complete guide on what the settlement contains, who qualifies, and how to apply for your portion.
What Is the Real Estate Commission Settlement?
Together with the several class-action lawsuits being referred to as “the real estate commission litigation,” these included allegations of conspiracy by several major real estate brokerages to fix commission rates artificially high contrary to the federal antitrust laws. As the companies in involved in these practices have not admitted to any wrongdoing, they have consented to well-known settlements to avoid further expensive litigation.
Some among the firms engaged in this settlement include Compass Inc., Real Brokerage, Realty ONE, @Properties, Douglas Elliman, Redfin, Engel & Völkers, HomeSmart, and United Real Estate. These amounts total to over $730 million for the settlements given by them, a great win for homeowners who were persuadably overcharged by commission fees in these settlements.
Who Is Eligible to File a Claim?
To be eligible to qualify for a share of settlement, you will need to fulfill the following conditions. You sold a residential home between October 31, 2017, and July 23, 2024. It must have been listed on a Multiple Listing Service (MLS), and you should have paid a commission to a real estate brokerage at the time of the sale.
Importantly, this does not mean that you were using a specific brokerage in the settlement. These contracts are cast far and wide to MLS-listed sales during the stated time period in which commission was paid to any of the brokerage involved.
How to File a Claim and Get Your Share
- If you believe you are eligible, then the process for claiming your share of the settlement is clear-cut. Start by collecting documents relating to the sale of your home. This may be closing statements or commission breakdowns that show a date of sale and fees paid.
- Next, go to the official site of the settlement and fill out a claim form. You will have to fill in information pertaining to the transaction and upload all the documents that confirm your eligibility.
- Be sure to submit your claim before the officially stipulated deadline on May 9, 2025. This date marks the last day claims will be taken into account.
Key Dates to Remember
The exclusion and objection deadline is October 3, 2024. This is the last date to object against the settlement terms and to opt out if you wish to pursue your own legal actions.
Final approval hearing date is set for October 31, 2024 to determine by the court whether the proposed settlement should be approved. The last day to file a claim and be included in the distribution of funds is May 9, 2025.
How Will The Settlement Payment Be Divided?
The funds will be distributed on a pro-rata basis once all claims that are valid have been submitted and verified. How much money a claimant will receive will depend on how many valid claims have been made, with larger claims during a home sale resulting in smaller payouts per claimant.
The number of claimants is so enormous that payouts are subject to variation. However, the intention is to afford equitable sums of financial restitution to all deserving participants.
The Significance of This Settlement
This legal resolution signifies a major milestone in favor of transparency and fairness in the real estate business. The suits have done much to question long-held commission structures to safeguard consumers in undue fees.
For a considerable number of homeowners, this is more than just a legal win; it is restitution for thousands of dollars lost to unfair commission practices. The ripple effects might, therefore, affect a change in how brokers and agents charge in the long run.
Concluding Thoughts
Anyone who sold his or her home between October 2017 and July 2024, paid a brokerage commission, and listed their property on an MLS is likely to be entitled to a portion of the $730 million settlement. Gather your documents, respect deadlines, and file your claim in order to secure your payout. This is an exciting opportunity to recoup your money for costs you may not have realized were excessive.