T
he U.S. Department of Justice was a dominant force in 2024, weighing in on key civil cases, questioning buyer agreements, and fighting the National Association of Realtors (NAR) in the Supreme Court. The DOJ's actions were a defining factor in the industry's evolution, particularly with regards to antitrust probes and litigation.
The agency's focus was not limited to reviving an old investigation into NAR; it also intervened in several high-profile cases involving the trade association and other industry players. This led to some unexpected twists and turns throughout the year, as the DOJ revealed its hand but left many wondering what its next move would be.
In February, the DOJ submitted a statement of interest in the Nosalek case, criticizing the original settlement between MLS PIN and the parties involved. The agency suggested that prohibiting offers of compensation altogether could promote competition by empowering buyers to negotiate directly with their own brokers. This proposal went beyond the terms of any previous commission case settlements.
The DOJ also expressed concerns about NAR's "no-commingling" rule, which prohibits real estate sites from displaying MLS listings alongside non-MLS listings. In a June filing, the agency argued that this rule limits competition and recommended that the case be sent back to District Court for reconsideration.
In another development, the California Association of Realtors (C.A.R.) was forced to revamp its forms after receiving a "formal inquiry" from the DOJ. The agency appeared concerned about a new buyer agreement created by C.A.R., which allowed brokers to include offers of compensation – something that may have been perceived as going against the spirit of the NAR settlement.
The DOJ's big finale for the year came in November with an 11th-hour statement of interest in the NAR settlement. While it didn't take a position on the $418 million deal, the agency raised new concerns about buyer agreements and antitrust issues. This move seemed to signal that the DOJ plans to continue looking at the industry in 2025, with an eye out for anticompetitive behavior.
As the industry looks ahead to 2025, many are wondering what the Trump administration's overhaul of the DOJ will bring. Until the Supreme Court weighs in on the matter, the real estate community will be watching and waiting to see how this saga unfolds.
