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Monday, November 25, 2024

NAR seeks rehearing over DOJ investigation reopening

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Carl Horst Chief Executive Officer at Cincinnati Area Board of REALTORS | Official website

Carl Horst Chief Executive Officer at Cincinnati Area Board of REALTORS | Official website

The National Association of Realtors (NAR) has taken a significant step in its ongoing legal dispute with the Department of Justice (DOJ). On May 1, 2024, NAR petitioned the United States Court of Appeals for the D.C. Circuit for a rehearing. This action challenges a ruling that would permit the DOJ to reopen an investigation into NAR's policies, which had previously been closed.

This development is separate from another legal matter involving NAR as a defendant in private class action litigation concerning broker commissions. The recent Settlement Agreement related to this litigation is also not connected to the current DOJ dispute.

In 2020, NAR and the DOJ reached an agreement to end an investigation into certain NAR policies, including the cooperative compensation rule and clear cooperation policy. As part of this agreement, NAR agreed to modify four of its policies and fully complied with these terms. However, eight months later, the DOJ resumed its investigation, which NAR claims violated their agreement.

NAR sought intervention from the D.C. District Court to prevent further investigation by the DOJ. Initially successful in court, this decision was later overturned by the D.C. Circuit upon appeal by the DOJ. This reversal prompted NAR's current petition for a rehearing.

"This dispute focuses only on DOJ’s ability to unilaterally withdraw from its settlement agreement with NAR," stated Katie from NAR. "It does not address any of the Department’s claims about NAR policies or antitrust topics."

NAR considers this case crucial due to its implications on government contract interpretation and is determined to advocate vigorously for its members' interests while highlighting perceived flaws in the court's ruling.

For more details on this issue, REALTOR® Magazine has published information regarding the petition.

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