The landmark decision in the Sitzer/Barnett Commission case could have devastating consequences for the National Association of Realtors. The head of the industry group said the arrival of the Justice Department could make things even worse.
Kevin Sears, who was elevated to the top job in January following the sudden departure of Tracy Kasper, warned of a potential Justice Department threat to the real estate industry as a whole, Inman reported. The comments, made at last week's real estate conference, were later posted on YouTube.
Mr. Sears referred to the verdict in Sitzer/Barnett, which found some of the group's rules regarding committees to be violations of the Sherman Antitrust Act. The lawsuit, which named an industry association and two securities companies as defendants, ended with a jury finding the companies liable for conspiring to raise brokerage fees and awarding them $1.8 billion in damages.
“At the end of the day, even if our policies and actions were right, all you have to do as an athlete is look at the scoreboard. We lost,” Sears said. .
The group is appealing the decision, but Sears said it has a “bigger issue” with the Justice Department.
“They're angry at us,” Sears said, pointing to the NAR's previous court victory as part of a long-running dispute over the Justice Department's investigation.
The Justice Department is considering reopening an investigation into the organization's committee rules. Industry groups reached a settlement blocking further investigation into policies under President Donald Trump's administration, but President Joe Biden's administration attempted to reopen the investigation.The matter is before the Court of Appeals in Washington, D.C.
Sears said the Justice Department could crush the way real estate agents operate, especially as the agency considers intervening in other cases.
“The reason I've talked so much about this is because it changes the way we operate our business,” Sears said. “It depends on whether you accept it and adapt to it or force it.”
Redfin CEO Glenn Kelman is among those in the housing industry who said the Justice Department is a bigger threat than antitrust lawsuits. Redfin, where Mr. Kellman announced his withdrawal from NAR last year and sought to cut off access to MLS from members, is a defendant in a similar lawsuit brought by plaintiffs' attorneys for Mr. Sitzer and Mr. Barnett. .
” [U.S. Department of Justice] is passionate about this issue,” Kellman said in response to the Sitzer/Barnett bombshell verdict. “I think they will look at the outcome of the lawsuit and decide whether to act further aggressively. And all signs indicate they will do so.”
— holden walter warner
