T
he Department of Justice's stance on buyer agent compensation is most clearly outlined in its statement in the MLS PIN case. This document provides valuable insight into the government's views on the real estate industry. The DOJ has been monitoring the industry closely and appears poised to pursue new investigations in 2025.

    A key passage from the Statement of Interest highlights the DOJ's concerns: "As long as sellers can make buyer-broker commission offers, they will continue to offer 'customary' commissions out of fear that buyer brokers will direct buyers away from listings with lower commissions." The DOJ argues that this practice leads to inflated commissions, reducing the seller's net proceeds and driving up purchase prices.

    The DOJ advocates for a more market-based solution: prohibiting sellers and listing brokers from setting buyer-broker commissions. This would allow buyers to determine their own broker's compensation, potentially leading to greater price competition and innovation in the market. The agency believes that this change would promote more competitive buyer agent service rates and reduce the burden on sellers.

    The real estate industry has traditionally framed compensation-sharing as a business-to-business cost of the listing broker. However, the DOJ interprets the market for buyer agent services differently, arguing that buyers and their agents should agree up front on services provided and their price. This shift in perspective could have significant implications for the industry's practices and policies.