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Real estate industry contends with class action antitrust case

Facing accusations of violating the Sherman Antitrust Act, the National Association of Realtors and various brokerages have found themselves the focus of a class action lawsuit. What exactly is the issue? Well, it surrounds the idea of who exactly should compensate the real estate agent assisting a buyer in the transaction.

Let’s go back a century to understand how the real estate business model works. When someone wants to sell their home, they employ a real estate agent to find a willing and able buyer. The agent then networks with other agents to see if they have a potential buyer. In return for their participation in completing the transaction, the agent who had the employment contract with the seller shares a portion of their commission with the agent who brings the buyer to the deal.

Brian D. Koellish, a Realtor, is a military relocation professional. The Focus on Finance column is coordinated by Wright Legacy Group.

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