In a notable legal move, a Texas real estate broker has filed a lawsuit against compulsory membership requirements set by various real estate associations, which restrict access to Multiple Listing Services (MLS).
This suit aligns with ongoing legal disputes in states such as Michigan and Pennsylvania, where claims of monopolistic behavior dominate the conversation.
Details of the Lawsuit
On November 25, Luz De Amor Eytalis submitted her complaint to the U.S. District Court for the Northern District of Texas.
She alleges that the National Association of Realtors (NAR), along with the Texas Association of Realtors, the Wichita Falls Association of Realtors, and Paragon MLS Connect, are violating federal civil and antitrust laws.
Eytalis argues that by enforcing mandatory membership in multiple associations to access MLS, these organizations create unfair competition barriers.
Moreover, she emphasizes that these strict membership rules disproportionately impact minority real estate professionals, hindering their opportunity to compete fairly.
Impact and Compensation
As a licensed broker operating in Wichita Falls, Eytalis is not only pushing for changes to these membership policies but is also seeking at least $5.8 million in compensatory damages.
This legal challenge is part of a growing trend, joining similar actions already underway in Michigan and Pennsylvania.
Although a recent antitrust case in California was dismissed, there are indications it might be refiled soon.
Notably, the Pennsylvania case—including claims of discrimination—parallels the issues raised in Texas.
Reactions and Changes
These lawsuits trace back to changes implemented in August due to NAR’s settlement agreement, specifically regarding the removal of compensation offers on MLS platforms.
Plaintiffs in Michigan have voiced concerns that these alterations greatly diminish the value of association membership.
The outcome of these lawsuits could threaten NAR’s membership model, which requires real estate professionals to pay fees to NAR and their local and state associations for MLS access.
In response to the evolving situation, some associations are already revising their strategies.
For example, Phoenix Realtors recently rolled out MLS Choice, an innovative subscription service that enables brokers to access MLS without being bound to join a Realtor association.
Source: Realestatenews