Court grants DOJ authority to reopen Realtors probe

The Court of Appeals on Friday authorized the Department of Justice (DOJ) to reopen an antitrust investigation into the National Association of Realtors (NAR).

In a 2-1 decision, a panel of judges from the U.S. Court of Appeals for the District of Columbia Circuit upheld a lower court’s order to “cancel” a 2021 investigative subpoena issued by the Justice Department’s Antitrust Division in a previously closed investigation into NAR. The decision was rescinded. Policies regarding fees and home seller selection, according to Friday’s filing.

NAR reached a settlement with the Department of Justice during the Trump administration. The Biden administration chose to abandon the settlement agreement and continue the investigation until a lower court blocks its ability to investigate in 2023. Friday’s court ruling allowed the lawsuit to proceed, ruling that it does not mean a previously concluded case cannot be reopened. The Department of Justice will continue its investigation into possible antitrust violations.

According to reports, Judge Florence Pan wrote in Friday’s majority decision that “investigations are routinely ‘closed’ and then ‘reopened,’ so the NAR may have misunderstood the language used in the final letter.” should not have been done,” the majority said in Friday’s ruling. new york times.

The legal battle against real estate trade associations centers on the high fees buyers pay when selling a home, which contributes to soaring home prices.

The Realtors Association recently agreed to pay $418 million in a settlement with home sellers over commission rates.

in statement By the Justice Department on Friday, Assistant Attorney General Jonathan Canter of the Justice Department’s Antitrust Division said:[r]The number of real estate commissions in the United States significantly exceeds those in other developed economies, and this decision allows them to investigate potential misconduct by NAR that may be contributing to this problem. The Antitrust Division’s capabilities are restored. ”

“The Antitrust Division is committed to lowering the cost of buying and selling homes. I would like to commend the Antitrust Division staff and my colleagues in the Division for achieving this important accomplishment,” Kantor continued.

Judge Justin Walker cited a previous agreement between NAR and the Department of Justice as a reason for his dissent, saying NAR “entered into a contract with the Department of Justice’s Antitrust Division.”

“As with any contract, both parties gained something and both parties gave up something,” Walker said. “Real estate agents agreed to abandon four policies that the Justice Department deemed anticompetitive. In exchange, the Justice Department promised to “close” its investigation into two other policies. ”

NAR condemned the ruling in a statement. politikosays it is considering how to proceed.

“NAR believes the government should abide by the terms of the contract,” NAR spokesperson Mantil Williams told the program. “We are reviewing today’s decisions and considering next steps.”

Hill contacted NAR.