T
he real estate industry has recently seen a significant development as a major brokerage company has reached a settlement in a lawsuit related to buyer agent commissions. This settlement involves a cloud-based brokerage agreeing to pay out a total of $2.95 million over the next two years as part of a rule change enforced by the National Association of Realtors (NAR). This agreement is a result of a copycat lawsuit brought by Texas home builder QJ Team LLC and Five Points Holding in December last year. The case was filed in the U.S. District Court for the Eastern District of Texas.

    Fathom Realty, a national brokerage company based in Cary, North Carolina, is one of the companies involved in this settlement. Due to its high sales volume in previous years, Fathom was not included in an earlier settlement on March 15th. According to the Real Estate Almanac, Fathom achieved a remarkable $16 billion in sales volume in 2022.

    Under the terms of the settlement, Fathom will make a payment of $500,000 into the settlement fund once the deal is approved by the court. This will be followed by another payment of $500,000 in October 2025, and a final payment of $1.95 million by October 2026.

    Marco Fregenal, CEO of Fathom Holdings, emphasized that this settlement was not an admission of liability but rather a strategic decision to move forward without the burden of prolonged litigation. He stated that this agreement would allow Fathom's agents to focus on their clients without distraction, while also saving on legal fees and freeing up executive time.

    With this settlement in place, the overall settlement fund has surpassed the $1 billion mark. Prior to this agreement, the fund was at just under $998.38 million, according to court documents filed last week.

    Fathom Realty is a national, cloud-based real estate brokerage and is part of Fathom Holdings, which also includes brands such as Encompass Lending, Verus Title, and intelliAgent.