In a surprising move, Bob Goldberg, the CEO of the National Association of Realtors (NAR), has announced his resignation earlier than expected. The decision comes after a federal jury recently found the association liable for artificially inflating home sales commissions, resulting in a staggering $1.78 billion in damages being awarded.

The NAR, along with some residential brokerages, including units of Warren Buffett's Berkshire Hathaway, was found guilty of colluding to inflate commissions from home sales. This verdict has the potential to disrupt the practices of real estate agents nationwide, as they often rely on increasing commissions to keep up with rising home prices.

Although the NAR did not specifically reference the lawsuit as a reason for Goldberg's departure, it is evident that the legal repercussions and negative publicity surrounding the case have contributed to this outcome. Goldberg, who had originally planned to retire at the end of 2024, will step down as CEO at the end of this month.

The leadership transition occurs amidst additional turmoil within the NAR. In August, the association's president, Kenny Parcell, resigned following a New York Times article that exposed sexual harassment allegations against him. This scandal further tarnished the reputation of the organization.

Effective November 30th, Goldberg will be succeeded by Nykia Wright, who is currently serving as the interim CEO while the NAR searches for a permanent replacement. Goldberg, with his three-decade-long tenure at NAR, will continue to serve as an executive consultant during the transition.

Expressing his gratitude for leading the NAR, Goldberg stated in a press release, "I am grateful for the privilege of leading NAR and confident that the association will continue delivering incredible value to its members for generations to come." Despite the challenges faced by the NAR, Goldberg remains optimistic about the future of the organization.

The NAR plans to appeal the federal jury's decision and seek a reduction in the damages awarded. As the industry grapples with the aftermath of this lawsuit, real estate professionals will be closely watching the developments and potential shifts in commission practices.