The U.S. Court of Appeals for the 15th Circuit in Washington, D.C. on Friday denied a request by the National Association of Realtors (NAR) to review the court's previous ruling that allowed the Department of Justice (DOJ) to reopen an investigation into the trade association.
Legal battles over whether the Justice Department should reopen the investigation have been playing out in court dating back to the Trump administration, when the department agreed in November 2020 to end its investigation into NAR after reaching a settlement agreement in an antitrust investigation into NAR's role in buyer agent compensation.
But the Biden administration rescinded the settlement and reopened the investigation in July 2021. Following a legal challenge from NAR, a three-judge review panel in Washington ruled in April 2024 that the Justice Department could reopen the investigation. NAR petitioned for a rehearing in May, but as of Friday it was formally denied.
“This decision runs counter to long-standing precedent regarding the interpretation of government contracts and the fundamental principle that the government must keep its promises,” an NAR spokesperson told HousingWire in an email. “We are evaluating all remaining legal options and are committed to taking every step to ensure that the Department of Justice complies with the terms of the 2020 agreement.”
Amid the legal proceedings related to the Department of Justice investigation, NAR reached a settlement in March in a class action lawsuit filed in Missouri, agreeing to pay home sellers $418 million over four years. NAR also agreed to change or adjust some rules, such as removing the requirement for buyer agent compensation offers in multiple real estate brokerage services. The new rules will take effect on Aug. 17.
Since the Missouri lawsuit was settled, countless copycat lawsuits have been filed across the country and are currently in various stages of the legal process. These lawsuits involve some of the largest real estate brokerages in the country, including Anywhere, Keller Williams and RE/MAX.
The denial of NAR's request for rehearing wasn't the only news Friday involving the Department of Justice and the Realtors Association.
The California Association of Realtors announced it would release new forms for its members on July 24. The announcement comes weeks after the Department of Justice launched a formal investigation into the association's forms, saying it was concerned they contained loopholes that could allow real estate agents to get around new rules that go into effect next month.