Maurice Muhammed, a Pennsylvania real estate broker, has filed a lawsuit against the National Association of Realtors (NAR), the Pennsylvania Realtor Association (PAR), and his local MLS for requiring him to become a Realtor to access the MLS.
He’s asking for no less than $5.6 million in compensatory damages, along with punitive damages, and seeking a permanent injunction requiring NAR, PAR, and GLVMLS to
- Eliminate forced membership,
- Restructure board governance to improve minority representation, and
- Develop alternative MLS systems
Muhammad filed the lawsuit “pro se” (on his own behalf) and has asked the court for a jury trial.
From Muhammad’s complaint:
“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.
“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.”
Read on for the highlights.
Lawsuit Overview and Claims
Aside from the national and state Realtor associations, Muhammad is suing his local MLS, the Greater Lehigh Valley MLS (GLVMLS). The lawsuit claims breach of contract as well as violations of federal civil right statutes and antitrust laws.
Muhammad alleges all three defendants force real estate professionals to join their organizations to access MLS services, arguing this requirement stifles competition.
His complaint accuses NAR, PAR and GLVMLS of violating the Sherman Act and the Clayton Act by maintaining a monopoly over MLS services.
The language is similar to previous antitrust lawsuits filed against NAR and other Realtor associations. According to the complaint, the defendants’ monopoly drives up the cost of MLS access by requiring Realtor group memberships—at the national, state, and local level—and preventing the emergence of alternative MLS providers.
Alleged Discrimination and Systemic Bias
Aside from the alleged antitrust violations, Muhammad is also claiming that NAR, PAR, and GLVMLS discriminate against minority real estate professionals by—
- Selectively enforcing rules
- Applying disciplinary measures inequitably
- Excluding minorities from leadership positions
As to the third complaint, Muhammad alleges leadership positions are predominantly held by non-minority individuals and that, as a result, board policies do not address the unique challenges faced by minority real estate professionals.
Muhammad further argues that the defendants have consistently ignored concerns raised by minority Realtor board members about discriminatory practices, further perpetuating the latter’s exclusion.
Byron Lazine and Nicole White discussed this lawsuit and what it means for the industry in this week’s episode (#340) of The Real Word.
Broader Context and Similar Cases
Muhammad’s lawsuit follows a similar class-action antitrust case filed by two Michigan brokers and an agent against NAR and local Realtor associations over mandatory membership with NAR and state and local Realtor boards for MLS access.
Read the full filing here for more information. And stay tuned for more as the case develops.
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