Re/Max Holdings, a leading real-estate brokerage, has agreed to settle two class action lawsuits for $55 million. These lawsuits challenge a rule that requires home sellers to pay commissions to brokers representing the buyers of their homes. While Re/Max has agreed to make certain changes to its business practices as part of the settlement, further details were not disclosed.
It's important to note that this settlement does not imply any admission of liability or validity of the claims made in the litigation. Re/Max continues to deny the allegations brought forward in these lawsuits.
At this time, settlement documents have not yet been filed in court records for the two cases involved—one in Missouri and another in Illinois.
Representatives from Re/Max were not immediately available for comment regarding the settlement.
The lawsuits accuse the National Association of Realtors and the four largest national real estate broker franchisors, including Re/Max, of colluding to impose the buyer-broker commission requirement, resulting in inflated commissions that sellers are forced to pay.
Another co-defendant, Anywhere Real Estate (formerly known as Realogy Holdings), recently reached a separate agreement to exit the lawsuits by paying $83.5 million in damages. The remaining co-defendants, HomeServices of America and Keller Williams Realty, have not yet issued a public response.
Re/Max plans to use available cash to fund the settlement. Payments will be made in three installments: 25% on September 29, an additional 25% within 10 business days of preliminary court approval, and the final 50% within 10 business days of final settlement approval.
Re/Max has also reaffirmed its third-quarter and full-year guidance in conjunction with this disclosure.