5 Steps Real Estate Agents Can Take to Navigate the NAR Lawsuit

The real estate industry has always been one of the most competitive and dynamic fields in the business world. With constantly evolving laws and regulations, it is important for real estate agents to stay informed and up to date. Recently, the National Association of Realtors (NAR) has been hit with a lawsuit that is shaking up the industry. As a real estate agent, it is important to know what this lawsuit is about and what you can do to protect yourself and your business.


The lawsuit, filed by the Department of Justice (DOJ) in November 2020, accuses the NAR of violating antitrust laws by implementing rules that restrict competition and prevent real estate agents from offering more affordable and innovative services to consumers. Specifically, the DOJ alleges that the NAR’s rules prevent home sellers from choosing which services they want to pay for, ultimately driving up the cost of real estate transactions.


The NAR has denied the allegations and is currently fighting the lawsuit. However, it is important for real estate agents to be aware of the potential implications of this lawsuit on their business. Here are some steps you can take to protect yourself and your clients:


Stay informed: As the lawsuit progresses, it is important to stay informed about any updates or changes that may impact your business. Make sure you are subscribed to industry publications, and keep an eye out for any updates from the NAR.


Review your business practices: Take a look at your current business practices and see if there are any areas where you may be vulnerable to antitrust violations. Make sure you are offering a variety of services to your clients and that you are not engaging in any anti-competitive behavior.


Educate your clients: Many home buyers and sellers are not aware of the NAR’s rules and how they impact the cost of real estate transactions. Educate your clients on their options and make sure they understand the different services that are available to them.


Consider alternative business models: If you are concerned about the potential impact of the lawsuit on your business, consider exploring alternative business models. There are many innovative models that offer more affordable and flexible services to clients, such as flat-fee brokerages or discount brokerages.


Advocate for change: The lawsuit against the NAR highlights the need for more competition and innovation in the real estate industry. Consider advocating for change by joining industry groups that support alternative business models or by contacting your elected representatives.



It is important to remember that the outcome of the lawsuit is still uncertain, and it may be several months or even years before a decision is made. In the meantime, real estate agents should take proactive steps to protect themselves and their clients. By staying informed, reviewing business practices, educating clients, exploring alternative business models, and advocating for change, real estate agents can navigate the uncertainty and continue to thrive in the competitive real estate industry.

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