Bought a Home in California Since 2017? What to Know About the Proposed $120M Homebuyer Settlement
A proposed $120 million homebuyer antitrust settlement involving NAR may affect people who bought homes in California since 2017. Here's what we know.
If you've bought a home in California since 2017, you may want to pay attention to this.
There's a proposed $120 million homebuyer antitrust settlement involving the National Association of Realtors (NAR) and other real estate companies. If it's approved, some homebuyers may be eligible for part of the settlement.
There's an important catch: the settlement still needs final court approval.
Here's what we know, what we don't, and what you should (and shouldn't) do right now.
What is this settlement about?
Over the last few years, a wave of lawsuits has challenged how real estate agent commissions were set and paid across the country. Earlier cases focused largely on home sellers. This newer round of litigation is focused on homebuyers.
The proposed settlement would resolve claims against NAR and other named real estate companies in exchange for a combined payment of about $120 million.
Who might be eligible?
Based on what's been reported, the settlement is aimed at people who bought a home in California during the covered period (since 2017). Exact eligibility depends on the final settlement terms, including:
- The exact date range
- Which brokerages or agents were involved in your transaction
- Whether you need to file a claim to receive a payment
What you should do now
- Don't panic, and don't pay anyone. You should never have to pay to file a claim in a legitimate class-action settlement. Be wary of unsolicited emails, calls or texts asking for fees or personal financial information.
- Find your closing documents. Your closing disclosure or settlement statement shows the date of your purchase and the brokerages involved.
- Watch for official notices. If the settlement is approved, notices and claim forms usually come from a court-appointed settlement administrator.
- Go only to the official settlement website for information and claims.
What this does not mean
- It doesn't mean your purchase was improper or that your agent did something wrong.
- It doesn't affect your ownership of your home.
- It doesn't guarantee a payment. That depends on final approval, eligibility and how many people file claims.
Our take
At The GreenHouse Group, we've always believed buyers deserve to understand exactly how their agent is paid and what they're getting for it. Transparency is good for everyone, and so is knowing your rights.
We'll update this post once the court rules on final approval.
Have questions about a past purchase or your current home? Reach out. We're happy to help you find your documents and understand your options.
Educational purposes only. The GreenHouse Group Inc. (CA DRE #01859042 | NMLS #366847). We are real estate and mortgage professionals, not attorneys. This article isn't legal advice. Contact an attorney or the official settlement administrator about your specific situation.