HomeServices of America, a real estate brokerage owned by Berkshire Hathaway Inc., has reached a settlement in a lawsuit aimed at securing commissions for agents across the industry.
The brokerage has agreed to pay a total of $250 million over four years as part of a settlement of the Missouri lawsuit, commonly referred to as Sitzer and Burnett, according to HomeServices of America executive vice president Chris Kelly. The company said the settlement, subject to court approval, will help protect its agents from related lawsuits.
“While we have always been confident that our business practices are legal and ethical, the decision to settle was driven by a desire to resolve the uncertainty caused by the lengthy appeal and trial process,” Kelly said in an emailed statement.
The real estate industry, including the National Association of Realtors, has recently come under scrutiny due to numerous lawsuits targeting the way commissions are structured. Last year, a Missouri jury found a group of Realtors and others guilty of conspiring to maintain high real estate agent commissions in a $1.8 billion verdict in the Sitzer-Burnett lawsuit.
NAR agreed in March to settle litigation in that case, as well as other pending lawsuits. Other brokerages, including Compass Inc., also agreed to the settlements.
“This resolution allows us to focus on our primary goal of delivering unparalleled value in the real estate market and serving home buyers and sellers with the highest standards of service,” Kelly said.
The financial terms of the settlement are the sole responsibility of HomeServices without the participation of the parent company. This was previously reported by the New York Times and Wall Street Journal.