The legal woes continue for the National Association of Realtors (NAR).
On Wednesday, Maurice Muhammad — the broker of Progressive Realty — filed a complaint in U.S. District Court in Pennsylvania claiming that NAR, the Pennsylvania Association of Realtors (PAR) and the Greater Lehigh Valley MLS (GLVMLS) have violated federal civil rights statutes, engaged in unlawful discriminatory practices, breached their contracts, created a monopolistic system and broken federal antitrust laws.
“These practices disproportionately affect minority professionals and have resulted in inequitable enforcement of rules and exclusion from fair competition in the real estate industry,” the complaint states.
Muhammad claims that the three defendants have “engaged in a pattern of discriminatory practices against minority real estate professionals.” These practices have allegedly included “selective enforcement of professional rules, inequitable application of disciplinary measures, and the exclusion of minority professionals from leadership positions.”
The complaint cites a report by the Community Legal Services of Lehigh Valley, which found that minority members of NAR have been subjected to unequal enforcement of ethical standards. Additionally, the report said that the leadership structures of the three organizations are “overwhelmingly non-diverse, leading to policies and decisions that fail to protect minority members or address their specific needs within the profession.” It adds that the plaintiff has been personally subjected to discriminatory treatment by the defendants.
Additionally, the suit claims that NAR’s membership structure — which requires agents to join NAR in order to gain access to a Realtor-affiliated MLS — violate federal antitrust laws.
“The forced membership requirement imposed by NAR, PAR, and GLVMLS creates a coercive environment that disproportionately affects minority professionals who lack the financial resources to afford mandatory membership fees,” the complaint states.
“Defendants have used their monopoly over MLS services to prevent the creation of alternative trade organizations, thereby stifling competition and reinforcing their control over the real estate profession.”
This is not the first suit to take aim at the relationships between Realtor associations and MLSs. The Hardy suit, filed in August by a group of brokers in Michigan, alleges that the requirement for all Realtors and brokers in Michigan to be members of NAR, their state Realtor association and a local board of Realtors represents an antitrust violation.
Muhammad also claims that the lack of diversity in leadership positions at Realtor associations has resulted “in policies and rules that do not address the unique challenges faced by minority professionals.”
“Despite repeated attempts by Plaintiff and other minority members to raise concerns about these issues, their grievances have been consistently ignored by Defendants, perpetuating a system of exclusion and discrimination,” the complaint states.
In an emailed statement, a NAR spokesperson wrote the organization “deeply values diversity, equity and inclusion.”
“We strongly advocate for fair housing practices and inclusive policies that enable home ownership, and our commitment extends to both the millions of consumers and the real estate professionals who work on their behalf,” the spokesperson continued. “Concerning the recently filed pro se complaint, NAR has not yet been served but we will prepare a response to the allegations raised as appropriate.”
