REAL Brokerage
April 8, 2024
TORONTO and NEW YORK -- April 8, 2024
The Real Brokerage Inc. has agreed to settle the Umpa v. NAR class action on a nationwide basis, committing to pay 9.25 million dollars into a qualified settlement fund within 30 days of the court's preliminary approval.
The suit, filed in the U.S. District Court for the Western District of Missouri, alleged that brokerages including Real took part in practices that inflated buyer broker commissions. The settlement resolves all claims against Real, its subsidiaries and affiliated agents in the case and does not constitute an admission of liability.
As part of the agreement, Real will change certain business practices, including clarifying that commissions are negotiable, prohibiting claims that buyer agent services are free and including listing broker compensation offers in communications with clients. The company will also develop training materials to support the changes.
Real said it does not expect the settlement terms to have a material impact on its future operations. The agreement requires preliminary and final court approval.