H
omebuyers in Illinois have filed a federal antitrust lawsuit against three national real estate brokerages, alleging that their participation in the National Association of Realtors' policies on broker commission amounts to "collusion" and "anti-competitive behavior." The plaintiffs, Dawid Zawislak and Michael D'Acquisto, claim that NAR's policies artificially inflated buyer agent commissions by requiring listing agents to offer a portion of their commission to the buyer's agent. This policy, which was in place until August, also allowed buyer brokers to filter searches for properties by commission amount and advertise these filtered properties with higher commissions.

    The lawsuit names Equity Real Estate, HomeSmart International, and Fathom Realty as defendants, along with NAR, multiple listing services affiliated with NAR, and NAR-affiliated brokerages and realtor associations. The plaintiffs are seeking class action status and demanding a jury trial, claiming that the commission rates would not exist in a competitive marketplace.

    The lawsuit is one of several antitrust cases filed against national brokerages in Illinois federal court. Despite NAR's August policy overhauls, which were driven by its settlement of a similar case, the country's biggest residential brokerages remain under scrutiny. The plaintiffs claim that the old way of doing things was misleading and "opaque" to buyers, who were led to believe that buyer agents' services were free when in fact they were paid a commission from the sale price of the home.

    The lawsuit seeks damages exceeding $5 million and has more than 100 potential class members who may join the case. The plaintiffs are also seeking treble damages, attorney's fees, and injunctive relief, which could lead to policy changes within NAR.