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U.S. District Court judge has approved the remaining settlements in the Sitzer/Burnett case, adding nearly $700 million to the fund and ending a key chapter in buyer agent commissions cases. The settlement with the National Association of Realtors (NAR) accounts for nearly half of the total damages being paid, totaling $418 million plus an additional $30.6 million from brokerages and MLSs who opted into the deal.

    HomeServices of America's $250 million deal was the largest of the brokerage company settlements to date. NAR lead attorney Ethan Glass described the case as "extinction-level litigation" and said the organization felt fortunate that it was able to pay and survive, whereas many businesses would have been financially crushed.

    The settlement includes changes to industry practices, such as the removal of offers of compensation from the MLS and the mandatory use of written buyer agent agreements. The Department of Justice expressed concerns about certain aspects of the settlement, highlighting two issues: buyer agreement requirements and the possibility that defendants might try to use the settlement as a shield against future litigation.

    The DOJ wants to keep the door open for further investigations into real estate practices. Other cases remain open, including Gibson, which plaintiff attorney Micheal Ketchmark said he is "excited" to continue litigating. The approval of the settlements marks an important moment for NAR members, home buyers and sellers, and the real estate industry.

    The Department of Justice's statement of interest suggests that the federal agency will be keeping a close watch on the industry. Brokerages, associations, and MLSs who have not yet settled continue to face commissions-related litigation in copycat cases across the country. The next step for Ketchmark is returning to the Gibson case, which he filed immediately after the jury returned its verdict in Sitzer/Burnett.

    The costly consumer lawsuits and DOJ scrutiny could have long-lasting financial impacts on those who have settled. NAR estimated it is paying more than 55% of its total assets into the fund, something that will require the organization to be leaner in how it operates. HomeServices of America noted the cost burden, saying the damages "represented the uppermost limit of their ability to pay while still remaining financially viable."