Key Details:
- On August 16, 2024, the Cassina Group, LLC, a real estate firm based in South Carolina, filed an antitrust class action lawsuit against NAR and seven state Realtor associations.
- Later the same day, the lawsuit was withdrawn.
- The original complaint challenged NAR’s “three-way agreement” as a violation of federal antitrust laws, claiming it forces brokers and agents to pay for three memberships to access essential services.
As the National Association of Realtors (NAR) moves toward final approval of its settlement agreement, a new wave of lawsuits is emerging. This time, rather than home buyers and sellers raising concerns, NAR’s own members are stepping forward with legal challenges.
The latest came on August 16, when the Cassina Group, LLC filed a class-action antitrust lawsuit against NAR and several state Realtor associations. Attorneys for the Cassina Group filed a notice of dismissal later the same day, effectively withdrawing the complaint.
This was four days after Michigan real estate professionals filed a lawsuit against NAR, and just one day before NAR’s mandatory MLS policy changes went into effect.
Claims Against NAR and Realtor Associations
Filed in the U.S. District Court for the Northern District of Illinois, the original complaint alleged that NAR’s “three-way agreement” violates the Sherman Antitrust Act.
This agreement, according to the lawsuit, mandates that real estate brokers and agents must pay membership fees to three real estate associations—NAR, a state Realtor association, and a local Realtor association—to access essential tools like Multiple Listing Services (MLS) and lockboxes.
The complaint argued this “violates the antitrust laws because it eliminates competition in the market for real estate association membership between the national, state and local real estate membership associations and artificially inflates or stabilizes membership dues among these associations.”
It also highlighted that these memberships are redundant and financially burdensome. Illinois was used as an example, where the cost of three association memberships amounts to $1,251 (depending on the local Realtor association). This is roughly 2.7% of the average annual income of U.S. real estate agents, which was $46,014 as of January 2024, according to NAR.
In addition, it also stated NAR’s lockbox policy—requiring membership in a local Realtor association to access lockboxes—creates a significant barrier to entry for non-NAR-affiliated brokers. This effectively forces real estate professionals to join all three associations or risk being unable to perform essential business functions, such as showing properties to potential buyers.
Along with NAR, the following Realtor associations were named as defendants in the lawsuit:
- California Association of Realtors, Inc
- Florida Association of Realtors
- Illinois Association of Realtors
- Michigan Association of Realtors
- New York State Association of Realtors, Inc.
- Pennsylvania Association of Realtors
- South Carolina Association of Realtors
Lawsuit Dismissed
The complaint initially sought class-action status to represent all real estate brokers and agents nationwide who have been required to pay for these memberships. The plaintiffs asked for damages, injunctive relief to end the mandatory membership requirements, and a jury trial.
Later that same day, however, the lawsuit was withdrawn with a notice “to dismiss this action without prejudice since the Defendants have not been served with the Summons and Complaint.”
At this time, it is not clear as to why the complaint was withdrawn.
This post was edited from its original version to include the dismissal notice.
