In a major setback for the National Association of Realtors (NAR), the U.S. Supreme Court has declined to take up the association’s appeal request against the Department of Justice (DOJ).
This ruling, issued on January 13, 2025, allows the DOJ to continue its investigation into NAR’s practices, specifically the Participation Rule and Clear Cooperation Policy.
With this decision, the ongoing legal battle between NAR and the DOJ enters a new chapter.
The Ongoing Legal Saga: DOJ vs. NAR
The legal confrontation between NAR and the DOJ has been ongoing since 2018, with several key developments shaping the case:
- 2018: The DOJ opens an investigation into NAR’s Participation Rule and Clear Cooperation Policy, which govern commission practices and listing rules.
- 2020: NAR agrees to a settlement with the DOJ, committing to increase transparency around broker commissions and to stop misrepresenting buyer broker services as free.
- July 2021: The DOJ withdraws the settlement, claiming it prevents further investigation into potential anticompetitive practices.
- September 2021: NAR files a petition to set aside or modify the DOJ’s ongoing investigation.
- January 2023: U.S. District Court Judge Timothy Kelly rules in NAR’s favor, upholding the terms of the settlement as still valid and preventing the DOJ from reopening the investigation.
- March 2023: The DOJ appeals Judge Kelly’s ruling.
- April 2024: The U.S. Court of Appeals reverses the district court’s ruling, allowing the DOJ to resume its investigation.
- May 2024: NAR files a petition for a rehearing of the appellate court’s decision.
- June 2024: DOJ responds to NAR petition, arguing that a “rehearing is not warranted.”
- July 2024: NAR’s request for a rehearing is denied on Friday, July 12, 2024.
- October 2024: NAR petitions the Supreme Court to review the case, arguing the DOJ must honor contractual promises.
- January 2025: The Supreme Court declines to hear NAR’s appeal, allowing the investigation to continue.
What This Means for the Real Estate Industry
With the DOJ investigation set to proceed, the future of commission rules and antitrust concerns in real estate remains uncertain.
Speaking on the Supreme Court’s decision, a NAR spokesperson said the organization “remains committed to taking every possible step to fight for the interests” of their members and the consumers they serve.
This decision could have lasting effects on industry practices and the relationship between private entities and government contracts. For now, the battle continues, with significant implications for real estate professionals nationwide.
Stay tuned for more developments.
