Searchable definitions of antitrust concepts, settlement terminology, and real estate jargon
Laws designed to promote fair competition and prevent monopolies, price-fixing, and other practices that harm consumers.
Example:
The Sitzer/Burnett case alleged that NAR's commission rules violated antitrust laws by artificially inflating prices.
A lawsuit filed by one or more plaintiffs on behalf of a larger group of people who have similar claims against the same defendant.
Example:
The commission lawsuits were filed as class actions representing thousands of home sellers.
An agreement between parties to resolve a lawsuit without going to trial, typically involving payment and/or changes in business practices.
Example:
NAR agreed to a $418 million settlement and eliminated mandatory buyer-agent commission offers.
A written contract between a home buyer and a real estate agent outlining the terms of representation, including compensation.
Example:
Under the new NAR rules, agents must have signed buyer-broker agreements before showing properties.
The practice where the listing broker offers to share commission with the buyer's agent, traditionally displayed on the MLS.
Example:
The settlements banned displaying cooperative compensation offers on MLS platforms.
A database of properties for sale, shared among real estate brokers to facilitate cooperation in selling homes.
Example:
The new rules prohibit showing buyer-agent commission rates on MLS listings.
The practice of directing buyers toward properties or services that benefit the agent financially, rather than serving the client's best interests.
Example:
Zillow faces allegations of steering buyers to its own mortgage services.
An illegal agreement between competitors to set prices at a certain level, eliminating price competition.
Example:
Plaintiffs argued that NAR's commission rules effectively fixed buyer-agent compensation at inflated rates.
A court order requiring a party to do or refrain from doing specific acts, often part of settlement agreements.
Example:
The NAR settlement included injunctive relief requiring changes to commission display rules.
The court's official acceptance of a class action settlement after reviewing objections and ensuring fairness to all class members.
Example:
The Gibson settlement received final approval on February 6, 2026.
The right of class members to exclude themselves from a class action settlement and pursue individual claims.
Example:
Home sellers had until December 30, 2025, to opt out of the NAR settlement.
Triple the amount of actual damages, which can be awarded in antitrust cases as punishment for violations.
Example:
The $1.8 billion Sitzer/Burnett verdict could have been tripled to $5.4 billion under antitrust law.
A legal obligation to act in the best interest of another party, which real estate agents owe to their clients.
Example:
Agents have a fiduciary duty to disclose all compensation arrangements to their clients.
The separation of buyer-agent compensation from seller-paid commissions, allowing buyers to negotiate fees directly.
Example:
The settlements effectively decoupled buyer and seller agent compensation.
NAR rule requiring brokers to submit listings to the MLS within one business day of marketing a property publicly.
Example:
Compass challenged the Clear Cooperation Policy, arguing it restricted off-MLS marketing.
A property for sale that is not listed on the MLS, marketed privately by the listing agent.
Example:
The Clear Cooperation Policy limits the use of pocket listings.
The agent who is primarily responsible for bringing about a successful real estate transaction.
Example:
Commission disputes often center on which agent was the procuring cause of the sale.
The federal agency responsible for enforcing antitrust laws and representing the United States in legal matters.
Example:
The DOJ intervened in the Davis case, arguing that NAR's rules violate antitrust laws.
The federal agency that protects consumers and promotes competition, with authority over unfair business practices.
Example:
The FTC ordered Zillow and Redfin to provide documents in the rental syndication case.
The party who appeals a lower court's decision to a higher court.
Example:
NAR and the brokerages are appellants challenging the Sitzer/Burnett verdict.
The division of the total commission between the listing broker and buyer's broker, traditionally 50/50.
Example:
A 6% commission might be split 3% to the listing agent and 3% to the buyer's agent.
When a single agent represents both the buyer and seller in the same transaction, creating potential conflicts of interest.
Example:
Many states restrict or prohibit dual agency due to fiduciary duty concerns.
A contract where a buyer commits to working exclusively with one agent for a specified period.
Example:
The new NAR rules require written buyer agreements before property showings.
The foundational U.S. antitrust law (1890) that prohibits monopolies and restraints on trade.
Example:
The commission lawsuits alleged violations of Section 1 of the Sherman Act.
An antitrust violation so clearly harmful to competition that it's illegal regardless of its actual effect.
Example:
Price-fixing among competitors is considered a per se violation of antitrust law.
An antitrust analysis that weighs the pro-competitive and anti-competitive effects of a business practice.
Example:
Courts apply the rule of reason to determine if NAR's policies unreasonably restrain trade.
Agreements between parties at different levels of the supply chain (e.g., manufacturer and retailer).
Example:
NAR's commission rules were challenged as vertical restraints between brokers and agents.
An agreement between competitors at the same level of the market, often subject to strict antitrust scrutiny.
Example:
Agreements among brokerages to maintain commission rates would be horizontal agreements.
The pre-trial process where parties exchange evidence and information relevant to the case.
Example:
Discovery in the commission cases revealed internal NAR communications about maintaining rates.
Sworn out-of-court testimony taken during discovery, used to gather evidence and impeach witnesses.
Example:
NAR's CEO was deposed about the organization's commission policies.
A court decision made without a full trial when there are no genuine disputes of material fact.
Example:
NAR's motion for summary judgment was denied, allowing the case to proceed to trial.
The court's determination that a lawsuit can proceed as a class action representing multiple plaintiffs.
Example:
The court certified a class of home sellers who paid inflated commissions.
A requirement that class members actively choose to participate in a settlement, opposite of automatic inclusion.
Example:
Some settlements require opt-in, while others automatically include all class members unless they opt out.
A neutral third party responsible for processing and distributing settlement payments to class members.
Example:
The claims administrator will distribute the NAR settlement funds to eligible home sellers.
Unclaimed settlement funds distributed to charities or organizations that benefit the affected class.
Example:
Unclaimed funds from the settlement may go to housing affordability nonprofits.
A court proceeding to determine if a proposed class action settlement is fair, reasonable, and adequate.
Example:
The fairness hearing allowed objectors to challenge the NAR settlement terms.
A class member who formally opposes a proposed settlement, arguing it's inadequate or unfair.
Example:
Several home sellers filed objections claiming the settlement amount was too low.
A legal agreement where plaintiffs give up their right to sue in exchange for settlement compensation.
Example:
Accepting the settlement requires signing a release of all commission-related claims.
A contract between a seller and listing agent specifying the terms of representation and commission.
Example:
The listing agreement now must clearly state that seller payment of buyer-agent commission is negotiable.
A report comparing a property to similar recently sold homes to estimate its market value.
Example:
Agents provide CMAs to help sellers price their homes competitively.
Note: This glossary provides simplified explanations for educational purposes. For legal advice or precise definitions, consult with a qualified attorney. Terms and their applications may vary by jurisdiction.