HomeServices of America, a real estate brokerage owned by Berkshire Hathaway Inc., has settled a lawsuit regarding agent commissions within the industry.
As part of the settlement agreement for the Missouri lawsuit known as Sitzer and Burnett, HomeServices of America has agreed to pay a total of $250 million over four years. Executive Vice President Chris Kelly stated that the settlement, pending court approval, aims to protect the company’s agents from further legal action.
“While we have always believed in the legality and ethics of our business practices, we chose to settle to eliminate the uncertainty caused by ongoing litigation,” said Kelly in a statement.
The real estate industry, including the National Association of Realtors, has faced scrutiny due to lawsuits challenging commission structures. Last year, a Missouri jury found the Realtor group guilty of collusion to maintain high agent commissions, resulting in a $1.8 billion verdict in the Sitzer and Burnett case.
In March, the NAR agreed to settle the litigation, as did other brokerages like Compass Inc.
“This settlement allows us to focus on our core mission of providing exceptional value in the real estate market and serving clients with the highest level of service,” Kelly added.
The financial responsibility for the settlement falls solely on HomeServices, with no involvement from its parent company. The settlement was first reported by The New York Times and Wall Street Journal.
