National Association of REALTORS® (NAR) General Counsel and Chief Member Experience Officer Katie Johnson shared an important update on May 3, 2022, about the “Leeder” attempted class action lawsuit related to buyer representative compensation. On Monday, May 2, a U.S. district court judge dismissed this case.

Hello, REALTOR® Leaders!

After a flurry of legal updates last week, we have another development, this time it’s about the “Leeder” attempted class action lawsuit on behalf of buyers claiming they were harmed by the rule whereby listing brokers offer to compensate buyer representatives. We are pleased to report on Monday, May 2, a U.S. district court judge dismissed this case. Although the court left open the opportunity for the plaintiff to submit an amended complaint, the judge noted “it is unlikely Leeder will be able to plead adequately,” to pursue his allegations.

This is a win for consumers and members alike!

We continue to reinforce that the pro-competitive, pro-consumer local broker marketplaces serve the best interests of buyers and sellers. Sellers making offers of compensation to buyer brokers gives first-time, low/middle-income and all homebuyers a better shot at affording a home and professional representation to navigate this critical purchase.

As legal developments continue, I ask you to keep reviewing and sharing the messages available at the Competition.Realtor website. As I noted last week, you can use this information to tell your clients and customers what value you bring to the transaction, what they can expect from your services, and how you will be compensated.

Kudos to John Mayfield and Missouri REALTORS® for sharing your plan to get members talking! Let us know how we can support your efforts!

We know this week is busy with the legislative meetings, and that we have had a lot of litigation updates as of late. Please continue to take time each day to tell the world who we are.

Thank you!
Katie