Greenville, South Carolina – A lawsuit challenging real estate commission rules was presented in federal court in Charleston on Thursday. The lawsuit claims that one of the major real estate firms inflated commissions, and argues that home sellers should not be required to pay the full commission.
The U.S. Judicial Panel on Multidistrict Litigation will determine whether the case will be tried in South Carolina or joined with other buyer/broker cases nationwide to be heard by one federal judge. It should be noted that this case is separate from the recent settlement reached by the National Association of REALTORS.
The attorneys from Knie & Shealy Law Offices in Spartanburg, South Carolina, who filed the lawsuit, spoke with FOX Carolina News regarding their opposition to centralizing the case. They pointed out that there are already 15 similar cases across the country, each with its own unique nature. They expressed their intent to focus on the local REALTORs who carried out the alleged conspiracy, arguing that the discovery evidence would be best developed in South Carolina rather than in a Missouri court, which would be of little benefit to them.
Although 40 additional brokers have been added to the complaint, it is clarified that this does not mean 40 homeowners are joining the lawsuit. The attorneys explained that the brokers conspired together, making class representatives unnecessary in this particular instance.
The attorneys highlighted the differences between their South Carolina lawsuit and the national settlements. They expressed concerns about the Missouri settlement, citing various issues and stating their intention to object to it when it is presented for approval. Furthermore, they informed that there are still pending settlements, specifically the Keller Williams settlement and the National Association of REALTORS settlement, both of which they plan to object to.
While waiting for the panel’s decision, the attorneys remain optimistic and felt that their arguments against centralization were well-received. Their ultimate objective with this lawsuit is to change the current practice of sellers having to pay the agent representing the buyer, and they believe it is time to end this arrangement.
In conclusion, the attorneys anticipate the forthcoming verdict, which may take up to two weeks. They expressed confidence in their case and emphasized the need to eliminate the current system, stating that it simply does not make sense for sellers to pay the commission of the opposing agent.
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