Redfin has joined the growing list of real estate brokerages that have settled the commission lawsuits.
In a document filed with the Securities and Exchange Commission (SEC) on Monday, the brokerage announced that it had reached a nationwide settlement agreement on Friday with the plaintiffs in the consolidated Gibson and Umpa commission lawsuits.
As part of the settlement agreement, Redfin has agreed to pay $9.25 million into a qualified settlement fund within 30 days of the court’s preliminary approval of the agreement. The filing did not detail whether the firm agreed to any business practice changes as part of the settlement agreement.
According to Redfin, the settlement resolves all of the claims in the lawsuits and releases the firm, its subsidiaries and agents from the claims. Additionally, the firm noted that the settlement is not an admission of liability and it does not “concede or validate any of the claims asserted against us in the lawsuits.”
In an emailed statement, a Redfin spokesperson wrote that the firm is glad to have settled the litigation.
“As the only U.S. brokerage that has saved consumers more than $1.5 billion in fees, Redfin never belonged in this litigation,” the spokesperson added. “We always have been, and always will be, advocates for transparency and saving consumers money, directly selling homes to buyers to bring down fees, and broadly publishing commission data so consumers understand how much they are paying.”
Redfin joins Douglas Elliman, Realty One Group, At World Properties, Anywhere, RE/MAX, Keller Williams, Compass, HomeServices of America and The Real Brokerage, in settling the commission lawsuits filed by homebuyers and sellers that allege artificial inflation of agent commissions.
The National Association of Realtors has also reached a nationwide settlement of the commission lawsuits. That agreement was granted preliminary approval by the court in late April.
