A federal jury has issued a groundbreaking verdict in a class-action lawsuit against the National Association of Realtors (NAR) and some of the largest real estate brokerages in the United States. The jury found that the defendants artificially inflated commissions paid to real estate agents, resulting in a verdict of nearly $1.8 billion in damages.

The lawsuit, filed in 2019 on behalf of 500,000 home sellers in Missouri and border towns, accused the NAR and brokerages of conspiring to require home sellers to pay the broker representing the buyer of their homes, thus violating federal antitrust law. The jury's decision has the potential to significantly impact the real estate industry, with treble damages potentially reaching over $5 billion.

However, the NAR intends to appeal the verdict, stating that the matter is far from being resolved. Mantill Williams, a spokesman for the NAR, expressed the association's intention to ask the court to reduce the damages awarded by the jury. He also explained that the appeals process will likely extend the case for several years.

In the midst of this legal battle, the NAR and multiple real estate brokerages now face a new lawsuit over agent commission rules. The plaintiffs, represented by attorneys who were successful in the 2019 case, filed a new class-action lawsuit seeking nationwide coverage for anyone who sold a home in the past five years. The lawsuit names the NAR and seven brokerage companies, including Redfin Corp., Weichert Realtors, and Compass Inc.

The focus of the lawsuits is the NAR rule that mandates home sellers to offer to pay the commission for the agent representing the homebuyer when advertising their property on a local Multiple Listings Service (MLS). The plaintiffs argue that this rule has resulted in excessively high commissions for homebuyer agents and cost Americans an estimated $60 billion in extra real estate commissions.

The NAR, however, defends its practices by claiming that the offer of compensation to buyer brokers through listing brokers is beneficial for consumers. They believe it provides more opportunities for buyers to afford a home while giving sellers access to a larger pool of potential buyers.

Despite these ongoing legal battles, the real estate industry will continue to operate under existing commission structures, as the NAR intends to appeal Tuesday's verdict. It remains to be seen how the court will decide on potential restructuring of compensation and offers in the industry.

The outcome of these lawsuits and any subsequent changes to industry practices could have a significant impact on the way real estate agents are compensated and how homebuyers and sellers navigate the process. As the legal proceedings unfold, the real estate industry and consumers alike will be eagerly awaiting further developments.