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Real estate teams are defendants in Texas commission lawsuit

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Texas commission lawsuit defendants

Large corporate brokerage firms have been names defendants in the Texas court commission lawsuit. However, NAR has not been listed as a defendant in the action.

The Texas court has received the commission lawsuits. Large corporate brokerage firms like Keller Williams, Side, HomeServices of America, and Fathom Realty are named as defendants in the lawsuit; however, the extensive list of defendants also includes real estate teams like The Loken Group and Hexagon Group, as well as an individual broker named Mark Anthony Dimas.

Plaintiffs QJ Team, LLC., a homebuilder based in Texas, and Five Points Holdings, LLC., a holding company owned by Mark Hulme, the founder of DS News, filed the action in the U.S. District Court for the Eastern District of Texas Sherman Division on Monday. The lawsuit charges that the 29 defendants conspired to raise real estate agent commissions through false means.

The National Association of Realtors' Clear Cooperation policy, which mandates listing brokers to make a general offer of compensation to buyers' brokers in order to list the property on the MLS, is at the heart of the plaintiffs' lawsuit.

NAR is not listed as a defendant in the action, even though the trade association is acknowledged in the complaint as the one who originated the purported conspiracy.

Similar to the previous commission lawsuits, this one is attempting to become a class action. All individuals who listed properties in Texas on an MLS under the guidance of a listing agent or broker connected to one of the defendants and who paid a buyer broker commission between November 13, 2019, and the present are included in the class.

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