Key Details:
- NAR’s request for a rehearing of the DOJ investigation ruling was denied on July 12, 2024.
- The DOJ is officially allowed to reopen its investigation into the trade organization.
The U.S. Circuit Court of Appeals in Washington, D.C., has officially denied the National Association of Realtors (NAR) request for a rehearing of the decision allowing the Department of Justice (DOJ) to reopen its investigation into the organization.
This ruling, handed down on Friday, July 12, marks the latest chapter in a DOJ vs. NAR legal battle that has spanned both the Trump and Biden administrations.
DOJ vs. NAR BACKSTORY
Here’s a quick recap of the NAR vs. DOJ settlement:
- November 2020: The DOJ sent a letter to NAR agreeing to close its investigations after agreeing to a settlement. That settlement required NAR to improve its transparency regarding broker commissions and to stop misrepresenting buyer agent services as “free.”
- July 2021: With a new president in office, the DOJ withdrew the settlement, arguing that the settlement terms put undue restrictions on regulators, preventing their investigation of rules they deem harmful to consumers.
- September 2021: NAR filed a petition to either set aside or modify the DOJ’s probes.
- January 2023: Judge Timothy Kelly of the U.S. District Court for the District of Columbia ruled in favor of NAR, reasserting the earlier settlement terms.
- March 2023: The DOJ appealed this ruling.
- December 2023: A three-judge panel heard arguments from the DOJ and NAR.
- April 2024: The panel ruled 2-1 in favor of the DOJ, allowing it to continue its investigations into NAR.
- May 2024: NAR filed a petition for a rehearing of the court’s decision.
- June 2024: The DOJ responded to the petition stating that a “rehearing is not warranted.”
- July 2024: NAR’s request for a rehearing was officially denied on Friday, July 12.
NAR’s Response
In an email, a NAR spokesperson stated,
“This ruling stands in opposition to years of precedent on the interpretation of government contracts and the bedrock principle that the government must honor its word. We are evaluating all remaining legal options and are committed to exploring all avenues to ensure the DOJ is held to the terms of our 2020 agreement.”
This ruling comes just about one month before NAR’s practice changes, resulting from its proposed settlement terms, go into effect. Based on a statement of interest in the Nosalek case, there is speculation that the DOJ may want to see additional changes regarding commission-sharing policies.
Stay tuned for more details.
