The real estate sector experienced significant changes in 2025 following a $1 billion settlement addressing claims of inflated commission fees. Several class-action lawsuits against the National Association of Realtors (NAR) and major brokerage firms resulted in this settlement.
Understanding the Real Estate Commission Settlement
The lawsuits alleged that these companies engaged in unfair business practices, increasing the cost of home sales for sellers. The traditional commission model required sellers to pay both their agent’s and the buyer’s agent’s commission, limiting their ability to negotiate better prices.
Major real estate firms were accused of maintaining high commission rates in violation of antitrust laws. Without admitting any wrongdoing, these firms agreed to pay $1 billion to settle the claims.
$730M Real Estate Commission Payout Overview
| Authority | Residential Real Estate Broker Commissions Antitrust Settlements |
| Article | Real Estate Commission Settlement 2025 |
| Country | United States |
| Settlement Amount | Over $1 billion |
| Eligibility Period | April 29, 2014 – August 17, 2024 |
| Claim Deadline | May 9, 2025 |
| Payment Date | Varies based on claims |
| Official Website | RealEstateCommissionLitigation.com |
Companies Involved in the Settlement
Several major real estate firms are part of this agreement, including:
- Douglas Elliman
- Redfin
- Engel & Völkers
- United Real Estate
- Real Brokerage
- HomeSmart
- @Properties
- Compass Inc.
Together, these firms have committed over $730 million to compensate eligible homeowners. Additionally, the settlement mandates changes to real estate practices, particularly regarding the use of Multiple Listing Service (MLS) platforms.
Who Qualifies for Compensation?
Homeowners may be eligible to claim compensation if they:
- Sold their home between October 31, 2017 – July 23, 2024.
- Paid a commission to a real estate brokerage.
- Listed their property on an MLS platform.
Importantly, homeowners do not need to have used one of the settlement’s participating firms to qualify. Any qualifying sale within the given period may be eligible for compensation.
How to Claim a Real Estate Commission Settlement
Eligible homeowners must provide proof of sale, such as settlement statements showing the sale date and commission paid. Claims can be submitted via:
- The official settlement website: RealEstateCommissionLitigation.com
- Mail (by sending a completed claim form to the relevant authorities).
All necessary documents must be included for the claim to be valid. The final submission deadline is May 9, 2025. Late claims will not be accepted, so homeowners should act promptly.
Impact on the Real Estate Market
This settlement is expected to drive transparency and improve fairness in the real estate industry. Key changes include:
- Removal of commission offers from MLS listings, allowing buyers and sellers to negotiate agent fees directly.
- Mandatory written agreements between agents and their clients, ensuring transparency in service terms and commission structures.
These changes could reshape how real estate transactions occur, potentially lowering costs for sellers and creating a more competitive market.
FAQs
Who can apply for the real estate commission settlement?
Homeowners who sold their property between October 31, 2017, and July 23, 2024, paid a commission, and listed the property on an MLS platform.
What documents do I need to file a claim?
You need a settlement statement showing the home sale date and commission paid.
How do I submit my claim?
Claims can be submitted online at the official settlement website or via mail with the necessary documents.
When will I receive my compensation?
Payment dates vary based on claim processing times and verification.
How will the settlement impact future real estate transactions?
Commission practices will become more transparent, and buyers and sellers will have greater flexibility in negotiating agent fees.