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A Texas actual property dealer has up to date her antitrust lawsuit towards the Nationwide Affiliation of Realtors, alleging she was “forced” to pay dues for inactive brokers as a way to adjust to the commerce group’s membership guidelines and keep entry to her native a number of itemizing service.
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On Jan. 23, dealer Luz de Amor Eytalis of Strategic Realty filed her third amended grievance within the case, which names NAR, the Texas Affiliation of Realtors, the Wichita Falls Affiliation of Realtors and the Wichita Falls Affiliation of Realtors MLS as defendants.
The swimsuit targets NAR’s three-way settlement, which requires those that need to be part of any Realtor affiliation to affix on the native, state and nationwide stage and pay attendant dues, and NAR’s “fair share” dues system, which requires brokers to pay membership dues for all licensed brokers affiliated with their companies.
The swimsuit additionally takes intention at a rule enforced by many Realtor-affiliated MLSs, however not by NAR, that requires Realtor membership to subscribe to the MLS.
Eytalis filed the swimsuit professional se, that means she is representing herself within the case.
Whereas Eytalis’s swimsuit initially got here to 6 pages, the most recent model is now twice that size and incorporates further particulars about her expertise as a dealer allegedly compelled to pay dues for inactive brokers to not have her membership terminated and, subsequently, her entry to the MLS lower off.
The most recent grievance alleges NAR, TAR, WFAR and WFMLS “have engaged in monopolistic practices that unlawfully restrict competition in the real estate market by requiring brokers to join multiple associations as a precondition for accessing MLS services, imposing a financial burden without proportional benefit and penalizing agencies if members opt to not join the membership impeding their ability to do business.”
In line with the grievance, Eytalis notified WFAR in 2023 of the inactive standing of two brokers and requested that the commerce group “consider waiving their fees due to their inactivity and non-use of membership services,” however WFAR declined and despatched Eytalis an bill for almost $3,500.
“This invoice was issued with a 60-day compliance deadline under threat of membership termination,” the grievance says.
“Cost was lastly made in early November 2023, previous to the precise due date for membership dues, which usually happen on the finish of the 12 months.
“This process created significant confusion and undue hardship for Plaintiff, who had previously paid dues faithfully for over a decade without requesting exceptions.”
The grievance additionally alleges that WFAR violated an article of its personal bylaws, “which requires fees to be assessed equitably and prohibits penalties for agents who are not actively utilizing services.”
Eytalis then allegedly acquired one other invoice of greater than $1,700 in June 2024 for an agent that Eytalis knowledgeable WFAR “was not in the area and had no communication with Plaintiff following sponsorship.”
WFAR Government Vice President Greg Hadsell then allegedly informed Eytalis in writing “that portions of the invoice, including assessment fees, MLS fees, and Sentrilock fees, would be removed due to the termination of sponsorship” for the agent, however Eytalis allegedly by no means acquired an up to date bill.
Inman has reached out to WFAR’s Hadsell for remark and can replace this story if and when a response is acquired.
Eytalis’s grievance alleges that, in violation of federal antitrust legal guidelines, NAR, TAR and WFAR have created a “‘tying arrangement’ in which access to MLS services, a separate product essential for real estate transactions, is conditioned on purchasing memberships to NAR, TAR, and WFAR” that brokers and brokers “may not need or want,” thereby disproportionately burdening small and minority-owned brokerages and stifling competitors from potential rival commerce teams.
“NAR sets national policies, which are implemented by TAR and WFAR, resulting in mandatory membership and penalties for noncompliance,” the grievance says.
“WFAR directly enforces these policies through its bylaws and dues structure, tying access to MLS services to membership dues and restricting competition for brokers seeking alternative solutions.”
The grievance factors to the commerce teams’ use of NAR’s “fair share” dues system, which the grievance asserts “financially penalizes brokers for not affiliating all licensed agents with the association.”
“The practice of requiring brokers to pay for all salespersons in the firm, regardless of their membership status or activity, significantly limited Plaintiff’s ability to sponsor additional non-member agents over the past ten years,” the grievance says.
“These mandatory fees penalize brokers financially and create barriers to entry for potential agents, and restricted Plaintiff’s income-generating potential in a way that is perhaps immeasurable.”
“This policy, enforced through mandatory fees and penalties, directly harms Plaintiff’s ability to operate competitively,” the grievance provides.
In an announcement, an NAR spokesperson informed Inman, “We will respond to the Plaintiff’s specific claims in our Motion to Dismiss, due February 6.”
The grievance alleges violations of the federal Sherman Act and Clayton Act in addition to breach of contract and unjust enrichment.
The grievance seeks a “permanent injunction prohibiting Defendants from continuing their forced membership and tying arrangements,” an “order requiring Defendants to establish alternative MLS systems that are not contingent upon membership in NAR, TAR, WFAR, or WFMLS,” and an “order mandating the establishment of a transparent and impartial dispute resolution system to address complaints brought by members without bias or undue financial burden.”
The grievance additionally asks for compensatory damages of at least $5.8 million “to compensate Plaintiff for the harm caused by Defendants’ unlawful conduct, including loss of income due to restricted income-generating potential over the past ten years,” for treble damages below the Sherman Act, and restitution, “including the refund of excessive fees,” amongst different gadgets.
Learn Eytalis’s third amended grievance (re-load web page if doc is just not seen):
