The Truth About the Real Estate Settlement: How a Legal Loophole Is Costing You

On October 31, 2023, a jury delivered a monumental $1.8 billion verdict against the National Association of Realtors (NAR) and other major brokerages, which was then tripled to over $5 billion under antitrust laws. This verdict was the result of a landmark lawsuit proving that for decades, Realtors colluded to artificially inflate buyer broker fees on the MLS through a system of “price-fixing”. These lawsuits began in Minnesota and were originated by AttorneyRE’s Doug Miller.

Now, the industry has a new narrative: “Nothing has changed.”

Don’t be fooled by their claims. When a Realtor says “nothing has changed,” they are not talking about how the industry has reformed; they’re bragging about how they’ve concocted a new scheme to continue the same deceptive practices.

One hour Continuing Legal Education class presented by AttorneyRE’s Doug Miller: 

The New Collusion Scheme: “Bad Workarounds” Off the MLS

The lawsuit banned the old system of offering commissions through the MLS. But the industry’s response has been to simply move their scheme “off the MLS”. Our research and experience show that they are actively engaging in “bad workarounds” to continue the very same collusion.

  • Deceptive Talking Points: Realtors are now telling sellers, “No one will show your house unless you offer money to buyer brokers” and asking buyers, “Do you want me to show you houses where the seller isn’t paying the buyer broker?”. These claims are designed to scare consumers into accepting the old, inflated fee structure. They are lies.
  • Rigged Contracts: The most dishonest part of this new scheme is how they’ve rigged their listing contracts. Our firm has seen their standard listing contracts with “gotcha clauses” that divert any savings from a buyer-negotiated commission directly to the listing broker, instead of to the seller. This guarantees that even if a buyer tries to save money, the savings intended for the seller goes right into the listing broker’s pockets. The buyers and sellers are the ones who lose out. It creates a huge disincentive for buyers to negotiate their buyer brokerage fees. This is dishonest and may be illegal. 
  • Stolen Savings: The video from a recent Continuing Legal Education class that Doug Miller presented shows how a seller could see their net proceeds increase by over $25,000 by using an attorney instead of a traditional broker. At the same time, the class shows how Realtors using their new rigged listing contracts can capture all the savings created by a buyer negotiating their buyer broker fee. The new “workarounds” are a direct effort to deceive buyers and sellers. 

Our Solution: The Attorney Advantage

We are on a mission to bring true transparency and competition to the market. While Realtors have been proven to have engaged in a “rigged system” and are now perpetuating it through deceptive workarounds, our legal model provides a clear, honest, and more affordable alternative.

  • We Stop the Collusion: We believe in uncoupling commissions. We counsel our buyers and sellers exactly how to beat the new rigged system Realtors have set up. Our process removes the incentive for bribery and steering, putting your interests first.
  • You Keep the Savings: By eliminating the bloated commission structure, we can save you thousands of dollars that you can use for your closing costs or keep as profit.
  • Real Expertise: We are not just agents; we are attorneys. We have a brokerage license to access the same MLS tools, but we are bound by a legal fiduciary duty to you alone.

We know how to beat them at their own game.

Call to Action:  Contact us today for a free consultation to learn how you can save thousands. 612-284-9000.

Disclaimer: This is for informational purposes only and is not legal advice.