Real estate brokerage Compass agreed to pay $57.5 million in class-action lawsuit settlements from U.S. home sellers on Friday. The antitrust lawsuits allege that the corporate conspired with other brokerages and trade groups to overcharge home sellers by billions of dollars.
According to the Associated Press, the plaintiffs claim that real estate brokers have been forcing home sellers to pay “artificially inflated” commissions to agents.
Homeowners had to incorporate a compensation offer for buyer’s agents when listing properties on the market on real estate industry databases, as per The Guardian. Not including the offer could allegedly result in buyer’s agents steering their clients away from the listing.
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Compass didn’t admit to any wrongdoing and stated that the settlement wouldn’t affect its operation, per The Real Deal.
“The reason we have now chosen to settle is so we will minimize distractions and deal with serving you and your clients,” said CEO Robert Reffkin in an emailed statement obtained by the outlet.
Compass joins Anywhere Real Estate, Keller Williams, and RE/MAX in proposing a settlement. The other three major brokerages agreed to pay a combined $209 million, in keeping with reporting from The Real Deal.
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As per the identical outlet, Compass’s proposed settlement includes practice changes like creating training materials and refining communication with agents about commissions, that are much like the opposite corporations’ agreements.
Last week, the National Association of Realtors finalized a $418 million class motion settlement that removed sales commission rules for brokers and agents.
