The lawsuit concerning homebuyer commissions is gaining momentum with an important update.
On December 13, 2024, James Lutz, the lead plaintiff in the Lutz homebuyer commission case based in Florida, filed a second amended complaint that includes 31 additional plaintiffs.
New Plaintiffs Join the Lawsuit
Among those joining Lutz are prominent individuals such as Scott Davis, James Mullis, and Mya Batton, many of whom have been involved in similar lawsuits regarding homebuyer commissions.
While Lutz himself purchased a home in Florida, the new plaintiffs come from a wide range of states, including North Carolina, Maine, Tennessee, Massachusetts, Wisconsin, Kansas, New Hampshire, Iowa, California, Illinois, Utah, West Virginia, Maryland, Missouri, Minnesota, Nevada, New Mexico, Arizona, Virginia, South Carolina, Washington, D.C., Michigan, Oregon, Connecticut, and New York.
Claims Against the National Association of Realtors
Despite these new additions, the fundamental claims and the defendants in the lawsuit remain unchanged.
Lutz and his fellow plaintiffs assert that the National Association of Realtors (NAR) Participation Rule compelled listing brokers to offer standardized commission rates to buyers’ brokers.
They argue that this practice artificially inflated agent fees, which in turn drove up home prices.
Impact of Recent Settlements
It’s worth noting that the Participation Rule in question is no longer valid; a recent settlement concerning NAR’s lawsuit over home seller commissions has banned compensation offers from the Multiple Listing Service (MLS).
The lawsuit originally commenced in July 2024 with only HomeServices of America named as a defendant.
Now, it has transformed significantly.
Lutz is represented by Randall P. Ewing Jr. from the law firm Korein Tillery LLC in Chicago, who is also involved in the larger Batton homebuyer commission cases.
Earlier this year, HomeServices of America was removed from the initial Batton litigation.
As this case unfolds, the landscape of homebuyer commissions continues to evolve, with the growing coalition of plaintiffs raising important questions about industry practices.
Source: Housingwire