Maurice Muhammad alleges a “monopoly” by NAR, the state Realtor affiliation and the native MLS limits competitors, inflates costs, and disproportionately impacts minority brokers and brokers.
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A Pennsylvania actual property dealer is suing the Nationwide Affiliation of Realtors, the state Realtor affiliation and his native a number of itemizing service for $5.6 million over the requirement that he change into a Realtor with a purpose to entry the MLS.
On Oct. 16, Maurice Muhammad, dealer of file for Progressive Realty in Allentown, filed a lawsuit towards NAR, the Pennsylvania Affiliation of Realtors and the Better Lehigh Valley MLS (GLVMLS) “for violations of federal civil rights statutes, unlawful discriminatory practices, violations of federal antitrust laws, breach of contract, and for creating a monopolistic system that imposes forced membership.”
Muhammad filed the go well with “pro se,” which suggests he’s representing himself, within the U.S. District Court docket for Jap Pennsylvania.
“The forced membership requirement imposed by NAR, PAR, and GLVMLS creates a coercive environment that disproportionately affects minority professionals who lack the financial resources to afford mandatory membership fees,” the criticism says.
“Defendants have used their monopoly over MLS services to prevent the creation of alternative trade organizations, thereby stifling competition and reinforcing their control over the real estate profession.”
Maurice Muhammad
Muhammad shouldn’t be the one dealer to object to the requirement many MLSs have that they be a part of NAR with a purpose to entry the MLS. In August, two Michigan actual property brokers and an agent filed a class-action antitrust lawsuit towards NAR, their state and native Realtor associations, and the state’s largest MLS, Realcomp II, difficult the requirement.
The Muhammad criticism additionally alleges NAR, PAR and GLVMLS discriminate towards minority actual property professionals by means of “selective enforcement of professional rules, inequitable application of disciplinary measures, and the exclusion of minority professionals from leadership positions.”
“Defendants require real estate professionals to join NAR, PAR, and GLVMLS to conduct business, even though many minority members receive little to no benefit from such membership and face discrimination within these organizations,” the criticism provides.
As a result of nearly all of management positions within the commerce teams are occupied by “non-minority individuals,” the criticism alleges that the commerce teams’ insurance policies and guidelines “do not address the unique challenges faced by minority professionals” and issues raised by Muhammad and different minority members “have been consistently ignored by Defendants, perpetuating a system of exclusion and discrimination.”
The criticism doesn’t present particular cases of this alleged discrimination, which Muhammad says he personally skilled, or of the issues raised by minority members. It refers to a “report by Community Legal Services of Lehigh Valley (CLCV)” which allegedly “revealed systemic bias in how real estate transactions involving minority professionals and clients are handled,” however the report shouldn’t be included within the criticism.
Inman has requested Muhammad for this info and can replace this story if and when a response is acquired.
The go well with alleges federal civil rights violations, breach of contract, violation of due course of underneath the U.S. Structure, and antitrust violations underneath the Sherman Act and Clayton Act.
“Defendants have violated federal antitrust laws, including the Sherman Act and Clayton Act, by maintaining a monopoly over MLS services and forcing real estate professionals into mandatory membership with NAR, PAR, and GLVMLS, thereby unlawfully restraining trade,” the criticism says.
“These practices have limited competition, inflated prices, and prevented the emergence of alternative MLS providers, all to the detriment of both professionals and consumers.”
The criticism seeks a jury trial and asks the court docket for a everlasting injunction to require the commerce teams to alter their processes “to ensure equitable treatment of all members and to eliminate forced membership requirements,” for an order mandating that the commerce teams create “alternative MLS systems” that don’t require membership in NAR, PAR or GLVMLS, for an order requiring the commerce teams to restructure their governance for larger minority illustration, for punitive damages and for compensatory damages of “no less than $5,600,000,” amongst different objects.
GLVMLS declined to remark for this story, citing the recommendation of counsel. PAR additionally declined to remark, citing pending litigation.
Inman has reached out to NAR and can add any remark to this story if and when a response is acquired.
Learn the criticism (re-load the web page if doc shouldn’t be seen):
