Court rejects NAR’s request for rehearing in Justice Department investigation

The US Court of Appeals in Washington, DC, on Friday rejected a request from National Association of Real Estate Agents (NAR) for a rehearing of the earlier court ruling that the Department of Justice (DOJ) may reopen an investigation against the trading organisation.

The legal back-and-forth over the Justice Department’s reopening of the investigation has been ongoing since the Trump administration. In November 2020, the Justice Department agreed to close its investigation into NAR after reaching a settlement over the antitrust probe into NAR’s role in compensating buyers’ agents.

But in July 2021, the Biden administration withdrew the settlement and reopened the investigation. After legal objections from the NAR, a three-judge panel in Washington ruled in April 2024 that the Justice Department could reopen its investigation. The NAR had requested a new hearing in May, but was officially denied on Friday.

NAR and the DOJ did not immediately respond to requests for comment.

During the legal proceedings related to the Justice Department’s investigation, the NAR settled a class-action lawsuit in Missouri in March in which it agreed to pay out $418 million to home sellers over four years. The NAR also agreed to change or adjust a number of its rules, most notably eliminating the requirement to make compensation offers to buyers’ agents on multiple listing services. The new rules will take effect on August 17.

Since the Missouri settlement, countless copycat lawsuits have been filed across the country and are still in various stages of litigation. These lawsuits have entrapped some of the largest real estate brokerages in the country, including Everywhere, Keller Williams And RE/MAX.

The denial of NAR’s request for a rehearing was not the only news Friday involving the Justice Department and realtor associations.

The California Association of Real Estate Agents has announced that it will issue new forms to its members on July 24. The announcement came weeks after the U.S. Department of Justice opened a formal investigation into the association’s forms. The Justice Department said it had concerns about whether the forms contained loopholes that would allow real estate agents to circumvent new rules that take effect next month.

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