BAM Key Details: 

  • The Real Brokerage announced today (April 8, 2024) it has agreed to a settlement to resolve the pending class action litigation, Umpa vs. NAR on a nationwide basis. 
  • This settlement, if approved, conclusively addresses all claims asserted by the plaintiffs against Real in the Umpa lawsuit and releases Real, its subsidiaries and affiliated agents from those claims. 

Real Brokerage announced today (Monday, April 8, 2024) that it has reached a settlement agreement to resolve the pending class action lawsuit Umpa vs. National Association of Realtors (NAR) on a nationwide basis. 

Real is one of the many major brokerages left out of the NAR settlement, leaving the Company with two non-trial options: make a substantial deposit according to NAR’s settlement terms or reach a settlement of its own. 

The proposed settlement addresses all claims asserted against Real by the plaintiffs in the Umpa lawsuit and, if approved, will release Real, along with its subsidiaries and affiliated against, from those claims. 

As stated in Real’s announcement, the settlement does not constitute an admission of wrongdoing by Real leadership, nor does it validate any of the claims in the Umpa filing. 

In a statement from Real CEO Tamir Poleg, he spoke about Real’s decision to reach an agreement:

We chose to settle this lawsuit to direct our energy to our agent community. We are committed to continuing to invest in our platform to provide our agents with the tools, training and technology they need to deliver the best possible home buying and selling experience for their clients. At the end of the day, we want to ensure that clients receive the best possible guidance when making one of the biggest financial decisions of their lives.

Tamir Poleg

Real Chairman and CEO

Here’s what we know so far. 

Real settlement terms

Real Brokerage has agreed to pay $9.25 million into a qualified settlement fund within 30 days of the court’s preliminary approval of the proposed settlement. 

Company leadership does not expect to suffer a material impact on its future operations as a result of the settlement terms. 

Real has also agreed to implement a number of specific changes to its business practices, including— 

  • Clarifications and full transparency on the negotiability of commissions
  • Prohibitions on claims the buyer agent services are “free”
  • Inclusion of listing broker compensation offers in communications with (potential) clients

The Company will also develop training materials to support these changes. 

The settlement agreement is pending the court’s preliminary and final approval and will take effect upon the latter. 

Stay tuned as we learn more.