At World Properties, parent company to Christie’s International and @properities, is the latest real estate company to announce a settlement deal in the national commission lawsuit Gibson—just days after being named as a defendant.
The deal, if approved, applies to that and all future lawsuits with the same cause of action. It also covers all company-owned brokerages in addition to @properties and Christie’s International Real Estate, which includes the Ansley Real Estate and Sereno brands, plus independently owned brokerages under the @properties and Christie’s International Real Estate umbrella. At World Properties, which did not disclose the monetary terms of the deal, said in a press release it did not admit any wrongdoing as alleged by the plaintiffs.
“Settling these claims today allows us to move beyond a very costly litigation process and focus our full time, energy and resources on what matters most: our agents, affiliate brokerages, staff and clients,” said Mike Golden, co-CEO of @properties and Christie’s International Real Estate.
As part of the settlement, the brokerages under the corporate umbrella will adopt new policies and procedures outlined in previous settlement agreements, including: Requiring brokerages and agents to disclose to prospective homebuyers and sellers that brokerage commissions are not set by law and are fully negotiable; prohibiting all brokerages and agents acting as buyer representatives from advertising or otherwise representing that their services are free; prohibiting brokerages and agents from filtering out or restricting listings based on the level of compensation offered to a cooperating broker, unless directed to do so by the client.
For more on all the legal happenings related to commission suits around the country, check out the California Listings’ Legal Ledger here.
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