The U.S. Circuit Court of Appeals in Washington, D.C., on Friday denied a request from the National Association of Realtors (NAR) for a rehearing of the court’s previous ruling that the Department of Justice (DOJ) can reopen an investigation into the trade organization.
The legal back-and-forth on DOJ reopening its investigation has been bouncing through courts dating back to the Trump administration. In November 2020, the DOJ agreed to close its investigation into NAR after reaching a settlement agreement on the antitrust investigation into NAR’s role in buyer agent compensation.
But in July 2021, the Biden administration withdrew the settlement and reopened the investigation. After legal objections from NAR, a three-judge panel in D.C. ruled in April 2024 that the DOJ could reopen its investigation. NAR petitioned for a rehearing in May, but was officially shot down as of Friday.
“This ruling stands in opposition to years of precedent on the interpretation of government contracts and the bedrock principle that the government must honor its word,” a NAR spokesperson told HousingWire in an email. “We are evaluating all remaining legal options and are committed to exploring all avenues to ensure the DOJ is held to the terms of our 2020 agreement.”
During the legal proceedings regarding the DOJ’s investigation, NAR reached a settlement in March on a class-action lawsuit filed in Missouri in which it agreed to pay out $418 million over four years to home sellers. NAR also agreed to change or adjust a number of its rules, most notably removing the requirement for buyer agent compensation offers on multiple listing services. The new rules take effect on Aug. 17.
Since the Missouri case settlement, countless copycat lawsuits have been filed across the country that are still in various stages of legal proceedings. These lawsuits have ensnared some of the biggest real estate brokerages in the country, including Anywhere, Keller Williams and RE/MAX.
The denial of NAR’s rehearing request wasn’t Friday’s only news related to the DOJ and Realtor associations.
The California Association of Realtors announced that will release new forms for its members on July 24. The announcement came weeks after the DOJ launched a formal inquiry into the association over its forms, stating that it had concerns over whether the forms contained loopholes that would allow Realtors to skirt the new rules taking effect next month.
