WASHINGTON — The National Association of Realtors will open its listing of homes for sale to cheaper, Internet-based brokers in an agreement to settle a federal lawsuit, the government said in a statement on Tuesday.
The Justice Department said the settlement would give consumers more choice and reduce commission rates by allowing greater access to the multiple listing services, which are central repositories of information on vast numbers of homes for sale in local markets.
“Today's settlement prevents traditional brokers from deliberately impeding competition. When there is unfettered competition from brokers with innovative and efficient approaches to the residential real estate market, consumers are likely to receive better services and pay lower commission rates,” said Deborah Garza, deputy assistant attorney general.
The government sued the real estate group in 2005, accusing it of adopting policies that allowed member brokers to withhold their home listings from online competitors. The lawsuit was scheduled to go to trial in federal court in Chicago in July.
The settlement will also require the real estate group to adopt a policy guaranteeing that Internet-based brokerage companies will not be treated any differently than traditional brokers. The group must also offer antitrust compliance training programs.
The National Association of Realtors has more than 1.2 million residential real estate members who operate in local markets throughout the United States. In almost every area of the country, brokers have organized multiple listing services to share information about homes for sale.
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