Homie Sues NAR and Major Real Estate Companies, Claiming Antitrust Violations

“In yet another of the seemingly endless legal actions filed within the real estate industry over the past few years, this time it was Homie Technologies on Aug. 22 filing an antitrust lawsuit in U.S. District Court for the Central District of Utah, claiming the National Association of REALTORS® (NAR) and other companies ‘conspired’ to prevent innovation and boycott low-commission listings. The lawsuit claims that Homie suffered from ‘express and tacit boycotts’ that involved real estate companies steering buyers away from its listings.”

A real estate agent’s attempt of influencing your decision to make an offer on a property that offers a higher commission rate is called “steering.” Your agent may try to not bring your attention to the listings that offer lower commission, or they may imply that a listing has some deficiencies compare to others, while in reality the only difference is the rate of compensation that the listing offers.

“Steering” violates real estate ethics. Your agent is required to show you all the properties that fit your search parameters, regardless of the compensation they will be receiving from the seller after closing. Real estate ethics requires your agent to be fully transparent and honest – but as a client, you should offer them the same courtesy.

As a buyer, you are now required to enter into a contract with an agent whose services you are relying on. Do not pressure your agent to show you the properties without having a contract signed, because doing so puts the agent and their broker in legal jeopardy. Once you sign a contract, abide by its terms. Using an agent’s time and then breaking the contract is not only unethical but may also make you liable for the full compensation, even if it has not resulted in a successful closing. It is your responsibility to fully understand the terms of the contract you are signing.

Be upfront with your agent about your intentions. If you are not ready to sign an “exclusive representation” agreement that will make you liable for compensation, ask for a “touring agreement” that does not require a payment. Many agents, especially the ones that are just starting out, will be happy to tour some properties with you, in a chance that you will sign with them in the near future or give them a good referral.

Satinleaf Properties offers 2.5% compensation to every buyer’s agent. If any of our properties currently on the market is a good fit for you, we will fully cover your agent’s compensation. We respect your agent’s hard work and we appreciate your business.