A northern California homeseller has filed a class-action commission lawsuit after paying more than $50,000 in fees following the 2020 sale of her Marin home. The complaint seeks class action status on behalf of anyone who paid a buyer broker commission with the sale of residential real estate listed on the Bay Area Real Estate Information Services, Inc. multiple listing service from December 8, 2019 to the present.
According to filing documents, the plaintiff, Christina Grace paid $29,358 to the listing agent and $20,970 to the buyer’s agent—3.5 and 2.5 percent of the sale price, respectively.
The defendants in the case include the National Association of Realtors, Compass, eXp, Anywhere, the Marin Association of Realtors, the North Bay Association of Realtors, Keller Williams and RE/MAX.
Much like prior commission suits in a handful of states, the complaint alleges the defendants’ conspiracy cost sellers thousands in overcharges.
“Given the requirement that seller brokers make a blanket and unilateral offer of commission to buyer brokers, buyer brokers face strong incentives to steer their buyer clients toward homes where the buyer broker would receive a higher commission,” the complaint states. “Steering is a key reason why agent commissions have remained high in the United States during the internet era, even as commissions in other countries have plummeted. Economic studies and literature have documented and confirmed the prevalence and significance of steering.”