November 2022 Bar Bulletin
By Kary Krismer
The traditional real estate brokerage commission system is relatively simple. Seller contracts with listing broker’s firm, which in turn offers a commission to other “cooperative” firms’ brokers of the same multiple listing service (“MLS”). Successful closings result in the payment of a commission from the listing firm to both the listing broker and buyer’s broker’s firm.
This system has led to significant litigation over the years. Government entities have alleged antitrust claims. Class action attorneys have brought claims on behalf of both buyers and sellers. Part of this has been due to strict MLS rules regarding commissions. For example, in some parts of...