National Association of Realtors Files to Dismiss MLS Lawsuit

The National Association of Realtors (NAR) announced that it has moved to dismiss the Moehrl v. NAR lawsuit because it misrepresents NAR rules for the operation of Multiple Listing Services (MLS).

As reported by Forbes, Moerhl v National Association Realtors centers around accusations that "NAR’s compensation policies—which require all member brokers demand blanket, non-negotiable buyer-side commission fees when listing a home on a Multiple Listing Service—is a violation of antitrust law."

In their statement, NAR states that MLS have been recognized by courts as “protecting consumers and creating competitive, efficient markets that benefit home buyers and sellers.”  

“In today's complex real estate environment, [NAR] and Multiple Listing Services promote a pro-consumer, pro-competitive market for home buyers and sellers, contrary to the baseless claims of these class action attorneys," said John Smaby, President of NAR. "Our filing [Saturday] shows the lawsuit is wrong on the facts, wrong on the economics, and wrong on the law."

According to a media statement, NAR’s brief states that the seven class-action law firms who represent one plaintiff have “resorted to fundamentally mischaracterizing NAR's rules.”

“That mischaracterization, according to the NAR's filing, led the class action attorneys to ‘dream up’ purportedly anticompetitive rules that simply do not exist in NAR's Handbook or Code of Ethics,” the release states. “In reality, NAR rules specifically direct listing brokers to determine—in consultation with their clients—the amount of compensation to offer buyers' brokers in connection with their MLS listings.”

According to NAR, its rules allow a buyer’s broker to negotiate a commission from the listing broker that is different from what appears on the MLS listing. NAR further says that neither NAR or any MLS have a say on setting broker commissions.  

“The MLS system is designed to create competitive markets to facilitate the sale of residential property in a way that benefits both buyers and sellers," Smaby said.

NAR said that its attempt to dismiss the lawsuit demonstrates the “shaky legal grounds” of the case.

"When a seller elects to permit their brokers to pay compensation to the buyer's broker, it frees up buyer cash thereby potentially increasing the number of buyers able to bid for that home and the amount of funds available for the purchase price," the filing states.