HomeServices' $250 million settlement moves forward 

More than three months after announcing its settlement agreement in the commissions cases, HomeServices of America now has a preliminary plan filed in court.

The plaintiffs in the Sitzer/Burnett case filed a motion for preliminary approval of the $250 million settlement, which was first disclosed on April 26. 

The proposed and finalized agreements reached by NAR and several large brokerage companies have now put the settlement fund at more than $980 million, according to the court filing.

U.S. District Court Judge Stephen Bough, who is overseeing the Sitzer/Burnett and Gibson/Umpa cases, granted preliminary approval of the settlement on Aug. 8, scheduling a final settlement hearing for 9:30 a.m. on Nov. 26. That's just a few hours before the final settlement hearing for the National Association of Realtors, which agreed to pay $418 million.

HomeServices' settlement was significantly larger than any of the other brokerage company settlements, and potentially the most complicated, protecting 70,000 agents across 51 brands and more than 300 franchisees. The next-largest payout came from Anywhere, which settled ahead of the Sitzer/Burnett trial for $83.5 million.

What HomeServices had to say: "We were very pleased, in cooperation with the plaintiffs' representatives, to file our executed settlement with the Court for preliminary approval," said Chris Kelly, executive vice president at HomeServices. 

"Our companies and agents have put in tremendous effort to update our forms and practices in anticipation of the business practice changes taking effect later this month. We are confident that the buyers and sellers we serve will have a smooth and positive experience as the industry adapts to these changes."

In other court news: The Illinois homebuyer plaintiffs in the Batton 2 case fired back at motions by the defendants to dismiss the case.

The defendants — Compass, eXp, Redfin, Weichert Realtors and United Real Estate — filed motions to dismiss earlier this summer, presenting a number of arguments including a lack of jurisdiction.

In addressing the jurisdiction motions, attorneys for the homebuyers said the defendants set their sights on the Illinois real estate market, "deliberately recouping ill-gotten profits from Illinois homebuyers who paid them artificially high broker fees and causing those buyers to pay inflated home prices."

If the case does move forward, the discovery phase is not scheduled to be completed until the spring of 2026.