CHICAGO — A lawsuit has been filed in U.S. District Court by homebuyer Matt Cwynar against several real estate brokers, accusing them of conspiring to maintain inflated commission rates in the buyer-agent market. The National Association of Realtors (NAR) is not named as a defendant but is implicated as a co-conspirator alongside affiliated brokerages and multiple local MLSs.
The complaint outlines allegations that brokers collaborated to enact anti-competitive practices that artificially raised commission fees, resulting in higher costs for consumers across Illinois and other states. Cwynar contends that prior to recent changes in NAR policies, certain rules prevented buyer agents from making commission-related contingencies in purchase offers and obscured the commission amounts paid to those agents from buyers.
According to the lawsuit, these practices have led to buyer-agent commissions that are “artificially elevated” and not reflective of a well-functioning market. The filing suggests that such restrictions contributed to a lack of transparency, causing homebuyers to unknowingly finance inflated commissions as part of their transactions.
The legal documents claim that the agents involved routinely directed clients toward properties with higher commission offerings. This was facilitated through NAR-affiliated multiple listing services (MLSs), which allowed agents to filter property searches based on commission rates. This inherent conflict of interest, the lawsuit argues, diminished the quality of service provided to homebuyers, as agents favored higher-commission homes, thus eliminating competition from discounted options.
Represented by attorney Colin Primo Cuscraini of McGuire Law PC, Cwynar’s case marks a departure from recent similar lawsuits, as he is not being represented by attorneys from the firms typically associated with such cases. The suit seeks class-action status and demands a jury trial, alongside damages and a permanent injunction against practices deemed anti-competitive.
Responses from the defendants are currently unavailable, as both The Real Brokerage and Realty ONE Group—previously involved in related legal settlements—declined to comment when approached. Other defendants in the ongoing lawsuit have not yet provided statements regarding the allegations.
As the housing market anticipates the implications of this lawsuit, the outcome could set a precedent for commission structures and transparency in the industry, particularly regarding buyer-agent practices.
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