If you sold a home in the United States between late 2017 and mid-2024, you might be in for a surprise. A massive $730 million real estate lawsuit settlement has been approved, and it’s designed to pay back home sellers who were charged unfair broker fees. This case involves some of the biggest real estate companies in the country.
The lawsuit claimed that real estate firms worked together to keep commission rates high, leaving sellers without any room to negotiate. As a result, many homeowners ended up paying more than they should have when selling their properties. Now, with this settlement in place, affected sellers may get a portion of their commission fees back.
This article explains everything you need to know: who qualifies, what documents are needed, how much money you could receive, and how to file a claim. If you sold a house during the eligible period, this might be a great opportunity to get compensated.
Why This Lawsuit Was Filed
The lawsuit, officially called Gibson, et al. v. National Association of Realtors, et al., accused several real estate firms of unfair practices. These companies were allegedly working together to enforce fixed commission rates that did not allow home sellers to look for cheaper alternatives.
Key points of the lawsuit:
- Real estate companies allegedly kept commission rates between 5% and 6%.
- Sellers had little choice but to agree to these high rates.
- The lack of competition led to higher costs for homeowners.
Which Companies Are Involved?
Many top real estate firms agreed to pay part of the $730 million settlement. Although none of them admitted fault, they settled the case to close the issue and compensate sellers.
Here are the companies and how much they contributed:
- Compass Inc. – $57.5 million
- Douglas Elliman – $7.75 million (plus $10 million more if needed)
- Real Brokerage – $9.25 million
- Redfin – $9.25 million
- @Properties – $6.5 million
- Engel & Völkers – $6.9 million
- Realty ONE – $5 million
- HomeSmart – $4.7 million
- United Real Estate – $3.75 million
Who Can Receive a Payment?
To get money from this settlement, you must meet all of these conditions:
- You sold a home between October 31, 2017, and July 23, 2024.
- Your home was listed on a Multiple Listing Service (MLS).
- You paid a real estate broker’s commission when selling your home.
Even if you’re unsure about your eligibility, it’s a good idea to check your home sale records for commission payments made during this time.
Sold More Than One Property?
If you sold multiple homes between 2017 and 2024 and paid a commission for each sale, you can file separate claims for each eligible transaction. Each home sale with proof of commission fees can be submitted for potential compensation.
What Documents Will You Need?
To prove your claim, you’ll need some important paperwork:
- Closing documents that show the date of your home sale.
- Proof of the commission fee paid to the real estate agent or company.
If these documents are missing or incomplete, your claim may be delayed or rejected.
How Much Can You Expect to Get?
The amount of money you’ll receive depends on:
- How many total claims are submitted.
- How much commission you personally paid.
- How the settlement fund is divided among all eligible sellers.
Here’s a rough estimate:
- If you paid a 5% commission on a $400,000 sale ($20,000), you might get 10%–20% back, which is $2,000 to $4,000.
The final refund amount will be calculated after all claims are submitted and reviewed.
How to Apply for the Payment
Step 1: Check Eligibility
Go to the official website: RealEstateCommissionLitigation.com. Use the available tools to see if your sale qualifies.
Step 2: Gather Your Records
Find your closing statement and any documents that show the commission fees you paid.
Step 3: Submit the Claim
- Deadline to file a claim: May 9, 2025.
- You can file online or send your claim by mail.
Step 4: Wait for Review
The court will hold a final approval hearing on October 31, 2024. After approval, payments will be sent out during 2025.
What Happens After You File?
After you submit your claim:
- The Settlement Administrator will check your eligibility.
- If your claim is approved, you will receive your payment sometime in 2025.
- If you already filed a claim in the past for this lawsuit, you do not need to apply again.
For updates, visit RealEstateCommissionLitigation.com regularly.