Second Commission Lawsuit Filed Against Nevada Real Estate Firms
A second home seller in Nevada, Angela Boykin, has filed a lawsuit alleging collusion among real estate industry players in the state to artificially inflate real estate agent commissions. The lawsuit, filed in U.S. District Court in Las Vegas, claims that the National Association of Realtors (NAR) is the creator of this alleged conspiracy through its Participation Rule. This rule requires listing brokers to make a unilateral blanket offer of compensation to buyer’s brokers to list a property on a Realtor association-affiliated multiple listing service.
According to the complaint, the Mandatory Offer of Compensation Rule stifles price competition among buyer brokers because the actual party retaining the buyer broker—the homebuyer—doesn’t negotiate or pay the commission for their broker. The lawsuit names several defendants, including NAR and various real estate brokerages such as The Agency, Chase International, and Compass, among others.
Similar to other commission lawsuits, the Boykin suit seeks class action status for anyone who listed a property on a MLS in Nevada using a listing agent affiliated with one of the brokerage defendants named in the suit and paid a buyer broker commission between Feb. 16, 2020, and the present. The plaintiff is also seeking damages, a permanent injunction enjoining the defendants from requiring sellers to pay the buyer broker, and a jury trial.
This lawsuit follows another commission lawsuit filed in early January 2024 by Nathaniel Whaley, which initially did not name any real estate brokerages as defendants. However, an amended complaint filed later in January added 15 brokerages to the list of defendants.
