$730M Real Estate Commission Settlement: If you sold a home in the United States between 2015 and 2020, you may be entitled to money from the $730 million real estate commission settlement. This historic legal agreement follows years of litigation that challenged the way real estate commissions are handled in the U.S. housing market. Let’s break down what this settlement means, how it impacts you, and most importantly — how to claim your share before it’s too late.
Whether you’re a homeowner looking for compensation, a real estate professional navigating new industry standards, or simply curious about one of the biggest shakeups in real estate law, this guide will give you the full picture. We explain the legal context, eligibility requirements, timeline, and steps for filing a claim in a way that’s easy to understand and professionally reliable. Plus, we dive into what this means for the future of real estate commissions and industry practices.
$730M Real Estate Commission Settlement
| Topic | Details |
|---|---|
| Settlement Amount | $730 million (part of a broader $943 million in total settlements) |
| Who Qualifies | U.S. home sellers from 2015 to 2020 who paid a buyer’s agent commission |
| Why It Happened | Antitrust lawsuit: alleged price-fixing of agent commissions by NAR and brokerages |
| Lead Case | Burnett v. National Association of Realtors (NAR) |
| Deadline | Claims process opens mid-2025 (exact dates TBD) |
| How to Claim | Claim form (pending court final approval); stay updated at NAR Settlement Info |
The $730 million real estate commission settlement is more than a legal story — it’s a real opportunity for millions of Americans to recoup money they may have overpaid. With sweeping reforms set to change how agents are paid and who pays them, now is the time to stay informed and prepared.
If you sold a home between 2015 and 2020 and paid a buyer’s agent commission, you might be eligible for a share of this landmark settlement. Begin gathering your paperwork now so you’re ready when the claims process opens in 2025.
What Is the $730M Real Estate Commission Settlement?
The $730 million real estate commission settlement is part of a broader legal battle stemming from the Burnett v. National Association of Realtors (NAR) case. This class action lawsuit alleged that the traditional commission structure, enforced by NAR and cooperating brokerages, violated antitrust laws by mandating that sellers offer a commission to the buyer’s agent.
According to the plaintiffs, this arrangement artificially inflated commission fees and limited the ability for market competition to drive costs down. In October 2023, a federal jury in Missouri agreed, awarding the plaintiffs $1.8 billion in damages. Since U.S. antitrust laws allow for damages to be tripled, the total risk was even greater.
To avoid continued litigation and even higher financial penalties, NAR and several major brokerages opted to settle. NAR agreed to pay $418 million, while other companies, including Keller Williams, RE/MAX, and Anywhere Real Estate (formerly Realogy), brought the combined total settlement to approximately $943 million.
This is not just a financial settlement; it’s a monumental change that will reshape how real estate agents get paid and how homebuyers and sellers negotiate contracts.
Why This Settlement Matters to You
If you’ve ever sold a home, you know how expensive real estate commissions can be. Traditionally, sellers in the U.S. pay a 5-6% total commission, split evenly between their listing agent and the buyer’s agent. Even though sellers have no working relationship with the buyer’s agent, they have historically been required to cover that fee.
This practice became the central issue of the lawsuit. Plaintiffs argued that it:
- Violated antitrust laws by suppressing free market competition
- Artificially inflated commissions, leading to higher costs for sellers
- Prevented fee negotiation and agent flexibility
For homeowners, this could mean thousands of dollars lost in each transaction. Thanks to the legal victory, those sellers may now receive partial reimbursement of those commissions. But this case isn’t just about back pay — it’s about changing the rules of the game going forward.
Who Qualifies for a Payout?
Eligibility for this settlement is based on several key criteria. You may qualify if:
- You sold a residential property in the United States
- The sale occurred between January 1, 2015 and December 31, 2020
- The home was listed on a Multiple Listing Service (MLS)
- You paid a buyer’s agent commission as part of the sale
- The brokerage you used was affiliated with NAR or was one of the named settling brokerages
These include, but are not limited to:
- Keller Williams Realty
- RE/MAX
- Anywhere Real Estate (formerly known as Realogy)
- HomeServices of America, a Berkshire Hathaway company
Even if you’re not sure whether your sale qualifies, it’s worth reviewing your records or contacting your agent to find out.
Claim Your Share: $730M Real Estate Commission Settlement Guide
Filing a claim doesn’t have to be complicated. Here’s a breakdown of the steps you should follow:
- Stay Informed: Begin by visiting the official NAR lawsuit settlement page. You can subscribe for updates, including the release of claim forms and final court approval dates.
- Collect Your Documents: Gather essential paperwork from your home sale:
- Closing statements (HUD-1 or ALTA)
- MLS listing printouts
- Commission breakdown from your agent or broker
- Signed listing agreements or agent contracts
- Wait for Final Approval: The settlement received preliminary court approval on April 23, 2024. The final approval is expected sometime in mid-2025. Claims cannot be processed until that happens.
- Submit Your Claim: When the claim window opens, fill out the form online or via mail. Be thorough and attach all required documentation. Incomplete claims may be denied.
- Receive Your Share: Payouts will depend on,
- The number of valid claims submitted
- The amount of commission you paid
- Legal and administrative costs deducted from the fund
- You could receive hundreds or even thousands of dollars.
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What Changes Are Coming to Real Estate Practices?
Beyond the financial settlement, the case mandates major reforms to long-standing industry practices:
- Sellers are no longer required to offer buyer-agent commissions on MLS listings.
- Buyers must sign written agreements with their agents detailing compensation.
- MLS services must eliminate fields requiring commission offers to buyer’s agents.
These changes, effective August 17, 2024, are expected to:
- Increase transparency between agents and clients
- Lower total transaction costs
- Encourage more competition in real estate services
For the first time, buyers may need to pay their agents directly or negotiate the commission structure up front. This is a major cultural shift in the industry, prompting brokerages to revise training, marketing, and service models.
Real-World Example
Let’s take a closer look at what this might look like for someone affected.
Case Study: Jane Doe
- In 2017, Jane sold her home in California for $400,000.
- She agreed to a 6% commission split between her listing agent and the buyer’s agent.
- That’s $24,000 in total commission, with $12,000 going to the buyer’s agent.
- Jane’s listing was on an MLS, and her broker was affiliated with one of the named companies.
As a result, Jane could file a claim and potentially recover a portion of that $12,000, depending on how many others apply and how the funds are distributed.
FAQs On $730M Real Estate Commission Settlement
Is the settlement final?
Not yet. As of April 2024, it has only received preliminary court approval. Final approval is expected in 2025.
When will I be able to file a claim?
You can file once the court grants final approval and the claim window officially opens. This is anticipated for mid-2025.
What if I don’t have access to my sale documents?
Try contacting your former real estate agent, brokerage, or title company. Many keep records for several years and can provide copies upon request.
How much compensation can I expect?
The amount depends on the total commissions paid, the number of eligible claims, and the remaining fund after legal costs. Exact figures will vary.
Do I need a lawyer to file?
Not necessarily. The claim form process is expected to be straightforward. However, if you need help verifying eligibility or understanding complex documents, consulting a legal professional could help.
Will my payment be taxed?
Possibly. While many settlement awards are not taxable, especially if they reimburse out-of-pocket expenses, each case is different. It’s best to consult a tax professional.
