The National Association of Realtors just notched a victory in court.
On Tuesday, judges in the U.S. District Court of Utah dismissed an antitrust lawsuit that discount brokerage Homie had launched against NAR and a handful of competitor real estate brokerages alleging that the entities “conspired” to prevent low-commission listings and industry disruption by the tech-focused real estate firm.
In the lawsuit, filed last August, Homie said it suffered harm from the adoption and enforcement of “NAR’s Exclusionary Rules and Policies” by the trade group and other companies. Companies Homie named as defendants in the suit included Anywhere Real Estate, Keller Williams Realty, HomeServices of America, HSF Affiliates, RE/MAX and Wasatch Front Regional Multiple Listing Service (WFRMLS). Keller Williams and WFRMLS were later dropped from the case.
In its memorandum filed on Tuesday, the court determined that Homie’s claims were no longer timely (in its initial complaint, it took issue with five NAR rules, only one of which, Clear Cooperation, is still in effect), that it failed to make a case for antitrust injury and that it did not provide enough evidence to prove wrongful interference in its business dealings.
“In support of this theory [that Defendants used anticompetitive rules that caused Homie clients and business partners to cancel or not renew contracts] and its allegation that it ‘lost business,’ Homie cites five anecdotal examples of customers cancelling contracts or listings,” the memorandum states. “Each one of these examples, however, fails to plead any causal link between Defendants and the alleged contractual interference. At best, they cast blame on individual real estate agents for being disinclined to work with Homie.”
In Homie’s complaint, it had argued that texts and other communications by real estate agents suggested they had steered clients away from Homie listings because of their lower commissions.
Last fall, NAR had asked the court to dismiss the lawsuit, arguing there was no evidence of an illegal conspiracy on the part of the defendants. The trade association said it was satisfied with the case’s outcome.
“NAR is pleased with the court’s ruling to dismiss the case with prejudice,” a representative for NAR said in a statement emailed to Inman. “NAR will continue to facilitate local real estate marketplaces that provide fair and equal access to property information, foster competition, and empower NAR members to serve clients on their homebuying and selling journeys.”
Representatives for Homie and RE/MAX were not immediately available to respond to a request for comment.
Chris Kelley, President and CEO of HomeServices of America, said the real estate company was pleased about the court’s determination.
“We believe the Court reached the right decision in granting the motion to dismiss,” Kelly said in an emailed statement. “We don’t believe the facts and underlying circumstances ever supported the claims asserted by the plaintiff. We will continue to defend against claims that misrepresent how we and our agents serve our consumers and operate within the real estate industry.”
Likewise, a representative for Anywhere said in an email, “We’re pleased to see these claims were dismissed with prejudice, as the lawsuit was fully without merit.”
RE/MAX representatives said in an emailed response, “RE/MAX, LLC appreciates the court’s careful consideration and analysis of this matter. We believed the claims lacked merit from the beginning and are pleased with the decision. We are proud of the way RE/MAX affiliates continue to serve clients with professionalism and integrity.”
Homie experienced significant growth in the few years leading up to 2021 when it announced that it was planning to hire 1,000 buy-side agents. The following year, however, the company experienced a swift turnaround with multiple rounds of layoffs and a resignation by its CEO. Agents were also shifted into contractor roles and the company said it would keep a smaller staff of W2 employees.
The company was ultimately sold in February and by this spring was down to just 22 agents.
Update: This story was updated after publishing with a comment from RE/MAX.
