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Prosecutors and the National Association of Realtors have reached a settlement in a civil lawsuit filed yesterday that claims several NAR policies aimed at bolstering multiple-listings services against online competition violate federal antitrust laws.

The Department of Justice’s Antitrust Division simultaneously filed a lawsuit and a proposed settlement that requires NAR to modify or repeal four policies adopted by the many MLSs it controls:

• Prohibiting MLSs that are affiliated with NAR from disclosing to prospective buyers the commission that the buyer broker will earn.
• Allowing buyer brokers to misrepresent to buyers that a buyer broker’s services are free.
• Enabling buyer brokers to filter MLS listings based on the level of buyer broker commissions offered
• Limiting access to the lockboxes that provide licensed brokers with access to homes for sale to NAR-affiliated real estate brokers.

Taken together, the policies created barriers to competition among real estate brokers, prosecutors said. The settlement did not require NAR to admit wrongdoing or the truth of DOJ’s allegations, however.

“Buying a home is one of life’s biggest and most important financial decisions,” Assistant Attorney General Makan Delrahim said in a statement. “Home buyers and sellers should be aware of all the broker fees they are paying. Today’s settlement prevents traditional brokers from impeding competition – including by internet-based methods of home buying and selling – by providing greater transparency to consumers about broker fees. This will increase price competition among brokers and lead to better quality of services for American home buyers and sellers.”

The public has 60 days to comment on the proposed settlement before a judge finalizes it.

In a statement emailed to Banker & Tradesman, NAR Vice President of Communications Mantill Williams said that “[m]ost of the changes seek to more explicitly state what is already the spirit and intent of NAR’s Code of Ethics and MLS Policies regarding providing information about commissions and MLS participation.”

Williams said NAR took issue with prosecutors’ characterization of of the rules and policies in question in the lawsuit, and defended the value of the MLS system.

“We’re proud to be associated with the MLS system that puts consumers first and benefits home buyers, sellers and small business brokerages, and is constantly building upon these principles,” Williams said.

NAR has recently faced other antitrust lawsuits over its pocket listings policy and other policies.