Washington, D.C. – The Department of Justice was granted the authority by an appeals court to reopen an antitrust probe into the National Association of Realtors on Friday. This decision comes after a District of Columbia Circuit Court of Appeals panel of judges voted 2-1 to reverse a lower court ruling regarding a 2021 investigative subpoena from the Antitrust Division of the DOJ. The subpoena was issued in a previously closed investigation into NAR policies related to commissions and the choices of home sellers.
During the Trump administration, the NAR had settled with the DOJ, but the Biden administration decided to continue the investigation. However, in 2023, a lower court blocked the administration’s efforts. The Friday court decision overturned this ruling, emphasizing that the case’s previous closure did not prevent it from being reopened. This decision allows the DOJ to further investigate potential anti-trust behavior within the NAR.
The dispute centers on the high commission rates on home sales, paid by buyers, which contribute to the rising unaffordability of housing. The realtor association recently reached a $418 million settlement with home sellers over commission rates. In response to the court’s decision, the DOJ expressed its commitment to investigating potentially unlawful conduct by the NAR that may be contributing to the high costs of buying and selling homes.
Judge Justin Walker, in his dissent, highlighted the previous agreement between the NAR and DOJ, suggesting that both parties had made concessions. The NAR criticized the ruling, stating that it is evaluating its next steps in response. The uncertainty of how the NAR will proceed adds a layer of complexity to the ongoing legal battle between the association and the Department of Justice.
The ruling also sparked a debate over the government’s obligation to uphold its contractual agreements. NAR spokesman Mantill Williams emphasized the association’s belief that the government should honor the terms of its contracts. With the NAR now considering its options, the future of the antitrust probe remains uncertain. This latest development underscores the ongoing tension between the real estate industry and regulatory authorities.
As the legal battle continues, stakeholders in the real estate market will be closely monitoring the outcomes and implications of the reopened investigation. The decision by the appeals court sets the stage for further scrutiny of NAR policies and practices, with potential ramifications for the broader housing market. The outcome of this case could have far-reaching effects on the industry and consumer interests.