New commissions case pulls in brokerages that settled
The Real Brokerage and Realty ONE Group have each paid millions to home sellers, but now face litigation from buyers claiming they paid inflated prices.
Just when it seemed like the industry was turning the page on commissions cases, a new chapter has begun — and the defendants include The Real Brokerage and Realty ONE Group, both of which have already reached settlements in similar lawsuits.
The complaint, filed June 28 by Kevin Cwynar, takes a familiar form: A class action accusing brokerages of inflating commissions and "engaging in and facilitating a conspiracy that has perpetuated anticompetitive measures in the real estate broker services market within Illinois and nationwide."
How this case fits into the bigger picture: The Cwynar lawsuit echoes the landmark Sitzer/Burnett case, which triggered a settlement that changed the way agents are compensated after a jury awarded nearly $1.8 billion to home sellers in 2023. Deals to settle other sell-side lawsuits followed, most notably in the Gibson/Umpa case, which covered Real, Realty ONE and other major players including Compass and Douglas Elliman.
Unlike Sitzer/Burnett, this new case is a buyer-focused action that claims buyers paid inflated home prices because commissions were baked into listing prices — without their knowledge or ability to negotiate.
This new complaint has been filed in the Northern District of Illinois, where the Batton case — another buy-side commissions lawsuit — is still unfolding. Also, the National Association of Realtors is based in Chicago.
This suit, like others, claims that NAR rules that used to require sellers to offer compensation to buyer agents through MLSs led to higher costs for consumers. Those rules went away as part of the NAR settlement in 2024, which included practice changes and a payout totalling $418 million.
Who is being sued: Defendants in the case are a mix of companies with a national presence and large regional players:
The Real Brokerage and Realty ONE group, which both operate across the U.S. and settled in the Gibson lawsuit last year for $9.25 million (Real) and $5 million (Realty ONE)
The Agency (aka Umro Realty Corporation), which was founded by real estate celebrity and private listings advocate Mauricio Umansky
Vanguard Properties, a luxury-focused independent brokerage based in the San Francisco Bay area that opted in to the NAR settlement
Kempa & Associates (Realty ONE Group Excel), a franchisee of Realty ONE
Real Estate News has reached out to defendants and will add their responses to this story. NAR declined comment.
Who is bringing the lawsuit: The plaintiff in this case lives in Illinois, the filing states, and bought a house in Algonquin, Ill., in the summer of 2020. The transaction involved "Realtors who worked for brokerages that are members of NAR," and the property was listed on Midwest Real Estate Data (MRED), an MLS with a hybrid ownership structure that includes Realtor associations and brokers.