If you’ve sold a home in the past decade, you might be eligible for compensation. A real estate commission lawsuit has resulted in a historic $730 million payout, and home sellers across the U.S. could receive part of the settlement. This article breaks down everything you need to know—in plain English and with expert-level insight.
Whether you’re a first-time seller or a real estate professional, understanding your eligibility and how to claim your share is crucial. Let’s walk through the facts, the background, and most importantly, how to get your money.
Real Estate Commission Lawsuit Ends in $730M Payout
| Topic | Details |
|---|---|
| Settlement Total | $730 million |
| Eligibility Window | Home sales between April 29, 2014 – August 17, 2024 |
| Deadline to File | May 9, 2025 |
| Who Qualifies | Sellers who listed homes on an MLS and paid commission |
| Major Parties Involved | National Association of Realtors (NAR), Compass, Redfin, Real Brokerage, and others |
| Average Payout | Estimated $13 to several hundred dollars, depending on claim volume |
| Official Website | RealEstateCommissionLitigation.com |
This real estate commission lawsuit settlement is a big deal—not just for the money, but for what it represents: a shift toward fairer real estate practices in the U.S.
If you sold a home between April 2014 and August 2024, don’t miss your chance to file a claim by May 9, 2025. The process is easy, and even a small payout could put money back in your pocket.
Stay informed, check your eligibility, and protect your financial interests.
What Is the Real Estate Commission Lawsuit About?
This lawsuit centers around allegations of price-fixing and anti-competitive behavior by the National Association of Realtors (NAR) and major brokerages. Plaintiffs argued that sellers were unfairly required to pay both their own agent and the buyer’s agent, leading to inflated commission fees.
According to court documents, commission rates typically hovered around 5% to 6% in the U.S., which is significantly higher than in other countries like the U.K. or Australia. This lawsuit alleges that industry practices restricted competition, keeping those rates high.
The settlement does not mean the defendants admit wrongdoing, but they agreed to pay a combined $730 million and reform their business practices moving forward.
Am I Eligible to Claim?
If you meet the following conditions, you may be eligible to file a claim:
- You sold a residential property (home, condo, mobile home, land, etc.).
- The sale occurred between April 29, 2014, and August 17, 2024.
- Your home was listed on a Multiple Listing Service (MLS).
- You paid a commission to a real estate brokerage.
Already filed a claim in a prior round of the litigation. No need to resubmit—you’re covered.
How Much Money Could I Receive?
There’s no set dollar amount for each claim. Here’s what determines your payout:
- How many people file valid claims.
- The size of the commission you paid.
- Whether your sale involved one of the settling brokerages.
According to Top Class Actions, claimants could receive anywhere from $13 to several hundred dollars depending on these factors.
Real-World Examples to Help You Understand
Let’s say:
- You sold your home in 2017 for $300,000.
- You paid a 6% commission, split between buyer and seller agents.
- Your listing was with a brokerage involved in the settlement (like Redfin or Compass).
You may qualify for a payout of up to a few hundred dollars, depending on the final claim volume and commission structure.
Step-by-Step Guide: How to File Your Claim
Filing a claim is simpler than you think. Here’s how:
Step 1: Gather Your Documents
You’ll need your closing statement or HUD-1 form showing:
- The sale date
- The property address
- The commission amount paid
Step 2: Go to the Official Website
Head over to RealEstateCommissionLitigation.com to begin the claim process.
H3: Step 3: Complete the Online Form
Enter your contact details, property information, and upload your documents.
Important: File before the May 9, 2025 deadline to be considered.
H3: Step 4: Track Your Claim
Once submitted, you’ll get a confirmation email. Save it and keep an eye on updates.
H3: Optional: Get Legal Advice
While not required, consulting a consumer protection lawyer might be helpful if:
- You have a complicated transaction history.
- You’re unsure about the eligibility.
What Brokerages Are Involved?
The settlement includes many of the nation’s top real estate firms. Here are a few:
- National Association of Realtors (NAR)
- Redfin
- Compass
- Real Brokerage
- Douglas Elliman
- Realty ONE Group
- @properties
- United Real Estate
- Engel & Völkers
- HomeSmart
These brokerages agreed to settle to avoid prolonged litigation and to adopt new business practices aimed at increasing transparency.
Why This Lawsuit Matters
This settlement could change how real estate transactions are handled across the U.S. It shines a spotlight on how commissions are structured and encourages:
- More competitive pricing
- Increased transparency in broker fees
- Empowered consumers with more negotiation power
Historical Context: How Did We Get Here?
Historically, U.S. real estate agents charged fixed rates, and sellers often had no choice but to pay the buyer’s agent as well. Over time, consumer advocates and economists argued that this system was outdated and stifled price competition.
The Burnett v. NAR case (formerly known as Sitzer/Burnett) gained national attention as it consolidated complaints from sellers across different states. The case ultimately led to this massive settlement, potentially shifting the future of home-selling in America.
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FAQs About Real Estate Commission Lawsuit Ends in $730M Payout
Q: What if I can’t find my closing documents?
A: Contact your title company or real estate agent. They often keep these for several years.
Q: Can I claim if I sold a home privately?
A: No, the sale must have been listed on an MLS and involved a brokerage.
Q: Is this a scam?
A: No, it’s a legitimate class-action lawsuit. You can verify all information at the official settlement site.
Q: Will this affect home prices or commissions in the future?
A: Likely yes. With increased scrutiny, experts expect lower commission rates and more competition.
Q: Can buyers file a claim too?
A: Currently, only home sellers who paid a commission are eligible to file claims under this settlement.
