Where Real Estate Gets Its Dirt

Does the DOJ/NAR settlement render Moehrl and other pending lawsuits moot?

From Inman News, DOJ-NAR settlement will effectively squash 2 consumer antitrust suits 

“The Moehrl lawsuit has thus been rendered moot. The DOJ has already taken action on the two claims at issue, and it disagreed with Moehrl’s proposed remedy. It’s the rare judge or jury who would choose to second guess the Justice Department and rule that Moehrl’s remedy is the only correct one.
The legal concept here is one of “pre-emption.” The DOJ-NAR settlement works to pre-empt alternative resolutions of the issues common to all three lawsuits: disclosure and rules.
Through this settlement, NAR has succeeded in preserving a vital cog in the housing market’s machine: the ability of buyers to capitalize the cost of real estate services. Only because the seller pays both sides, does the buyer get to include the commission in the amount being financed.  The alternative would be hugely disruptive. “

Interesting take here from Michael Lissack. I’ve spoken to a few people and while some agree it will affect the pending lawsuits it’s not certain how. Maybe it will just put a cap on further damages, or if in doing so will make the lawsuit less lucrative and therefore cause the attorneys to lose interest.

That being said, have to agree with Michael’s last sentiment here…

“A huge market disruption has been avoided. The ability of the marketplace to allow transactions which capitalize the cost of real estate services has been preserved.

It is Thanksgiving next week. I’m giving thanks for NAR. You should too.


  1. Yes to your opinion except for the case of a seller preserving the “Market Value” and refusing to pay a coop to the buyers’ broker. In that example, a buyer will have to pay cash for services rendered or the buyer broker take a note for monies owed or the buyer’s lender offers a solution by way of the loan including the buyer broker’s fees as part of the acquisition cost.

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