SALT LAKE CITY — A legal battle is brewing in Utah’s federal district court as HomeServices of America seeks to dismiss an antitrust lawsuit brought against it by Homie Technologies, a real estate firm advocating for lower commission rates. The lawsuit, filed earlier in the summer, accuses HomeServices and several other major real estate entities, including the National Association of REALTORS® (NAR), of conspiring to squash innovative business models and boycott low-commission listings.
HomeServices of America, headquartered in Minnesota, argues that the claims raised by Homie are outdated, asserting in their recent court filing that the statutes of limitations on Homie’s claims have expired. The lawsuit details violations under the Sherman Act, the Utah Antitrust Act, and claims of tortious interference based on a precedent set by White v. Wiseman.
Homie, which was founded in 2015 and operates out of Utah, alleges that following the adoption of certain real estate rules enforced by NAR, it suffered from both explicit and implied boycotts. Particularly, it cites the Clear Cooperation Rule as instrumental in directing potential buyers away from its low-fee listings, adversely affecting its business. The tech-driven company has been vocal about the industry’s resistance to change, particularly towards models that favor reduced commission fees.
The legal motion by HomeServices also mentions that many of the industry rules contested by Homie have already been repealed, altered, or are not actively enforced due to outcomes of other class-action lawsuits and settlements, thereby challenging the relevance and timing of Homie’s allegations.
Adding to the complexity, HomeServices contends that it should not be subject to the proceedings in Utah’s court due to jurisdictional issues, pointing out that both it and its subsidiary, HSF Affiliates, are based out of state and are legally domiciled in Delaware.
The lawsuit forms part of a larger narrative of antitrust claims in the U.S. real estate market, where NAR and various large brokerages have faced multiple lawsuits. These suits allege that NAR’s rules have helped to artificially inflate commission rates and limit competition, significantly affecting smaller or non-traditional real estate firms.
This is not a unique case in the industry, as reflected in a similar legal challenge by REX against NAR and Zillow. That lawsuit was dismissed earlier in 2023 with the judge ruling that REX failed to adequately prove its claims of conspiracy. REX has since appealed the decision.
Meanwhile, Homie is pushing for a jury trial and is seeking unspecified damages and injunctive relief to prevent further alleged anticompetitive behavior. The outcome of this legal challenge could have significant implications for how real estate services and commissions are structured and negotiated in the future.
As the legal proceedings unfold, the impacts of this case may resonate beyond Utah, potentially influencing real estate practices across the nation. While HomeServices and the other defendants prepare their defenses, industry observers and participants will be closely watching for broader implications on market practices and regulatory approaches.
Homie was not available for comment regarding the recent motion filed by HomeServices.
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