The real estate industry is watching the Sitzer/Burnett commission trial take place in Kansas City, Missouri, right now.
The Sitzer/Burnett lawsuit is based on antitrust claims from five Missouri home sellers who said they weren’t aware that commission rates were negotiable and called for buyers to compensate their own agents. The plaintiffs are seeking $1.78 billion in damages.
The trial began last week and is scheduled to run for two more, but it has been inching its way through the court system for years.
The defendants in the case include the National Association of Realtors as well as several major franchisors including Keller Williams, HomeServices of America, and their subsidiaries Berkshire Hathaway HomeServices and Real Living Real Estate.
Additional defendants are Anywhere (comprised of Coldwell Banker, Century 21, ERA and Sotheby’s, to name a few) and RE/MAX, but both of the companies have proposed settlements filed with the court, so they will be questioned at the trial.
The Missouri home sellers complaint is that the National Association of Realtors and various franchisors conspired to suppress competition and keep commissions high, specifically revolving around the historically common industry practice of having home sellers pay commissions on both sides of a transaction through “cooperation” with agents representing buyers.
The plaintiffs are set to wrap up their case on Monday, after which the defendants will begin calling witnesses.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
