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Real Estate & Property Law

Real Estate, Real Competition & The Law

Offers U.S. home buyers and sellers an opportunity to substantially reduce the $60 billion they collectively spend annually on real estate brokerage commission fees. Chronicles what one lawyer believes to be a variety of anticompetitive practices being encountered by these innovators.
By Michael Erdman

Post Frequency: 0.3/day

Last Entry: October 04, 2020 at 17:00:01

Federal Appellate Court: Realcomp's Website Policy Unreasonably Restrained Competition

Posted on October 04, 2020
The U.S. Court of Appeals for the 6th Circuit has ruled in the FTC v. Realcomp matter. You'll recall at issue in the case is Realcomp's alleged anticompetitive treatment of non-ERTS property listings.What seems like ages ago, an FTC Administrative Law Judge entered an initial decision in favor of Realcomp...

Missouri Real Estate Commission Wins First Battle with Kansas City Premier Apartments

Posted on October 21, 2010
Over two years after it first filed suit, Kansas City Premier Apartments, Inc. finally had its day in court earlier this year with the Missouri Real Estate Commission (here's my last pre-trial post). During the trial, the MREC failed to prove that any of the property advertisements on the KCPA website were false or misleading, or that KCPA's rental advisors conveyed any false or misleading information about specific rental units...

Showdown in Missouri

Posted on June 21, 2010
Some time ago I first wrote about an action filed by Kansas City Premier Apartments in a Missouri state court, seeking clarity on licensing issues raised by the Missouri Real Estate Commission. The case is set for trial later this week. Here's a cute piece produced by KCPA driving home its point that criminal sanctions are entirely inappropriate in this context...

DOJ Investigation of Hamptons Brokerages

Posted on May 20, 2010
Yesterday the New York Post reported on an inquiry being conducted by the U.S. Department of Justice's Antitrust Division involving Hamptons real estate brokerages. Here's subsequent coverage on the New York Times' DealBook blog.

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6% Commission Litigation - Update on Hyland v. Homeservices of America

Posted on May 12, 2010
Believe it or not, this case, first filed back in 2005 (and first blogged about here in 2007), is still alive and well in Louisville. In early 2008 plaintiffs filed their Fourth Amended Complaint, alleging, in a nutshell, that ?because of Defendants? unlawful agreement alleged herein, competition on the basis of commission rates has not occurred and Plaintiffs and class members have paid inflated rates to Defendants...

Google Love

Posted on May 12, 2010
It was recently brought to my attention that when searching the phrase "real estate competition" on Google, this blog organically comes up third, behind the Federal Trade Commission and the Department of Justice. I have to admit that's pretty cool (although probably meaningless)...

Federal Trade Commission vacates ALJ's Realcomp decision

Posted on May 04, 2010
Remember the Federal Trade Commission's complaint against Realcomp (a southeast Michigan-based multiple listing service)? The complaint alleged, among other things, that Realcomp prohibited information on EA listings (and other forms of nontraditional listings) from being sent from the MLS to public real estate websites (the "Website Policy")...

Federal Antitrust Class Action filed against West Penn MLS & Area Brokerages

Posted on April 19, 2010
[Editor's Note: As explained in a previous post, this blog has unfortunately been gathering dust as of late. While I'm unable to go back and write about every notable development that occurred in this space during my hiatus, I will be hitting on some of the highlights in the coming weeks and months...

What I've been up to - AgentsCompared.com

Posted on August 03, 2009
It's been awhile since I last posted here, and for good reason. Going back to the summer of 2007 I've been developing an idea I've had about helping home buyers and sellers make more informed decisions when selecting a local real estate agent. Last month it came to fruition - AgentsCompared...

Overview of USA v. NAR proposed Final Judgment

Posted on May 27, 2008
Here's a quick overview of the proposed Final Judgment ("PFJ") filed earlier today in USA v. National Association of Realtors. Note that before Judge Kennelly will consider and potentially enter the judgment, one or both parties will need to formally file a motion requesting same with the Court...

Settlement in USA v NAR?

Posted on May 27, 2008
A stipulation signed by attorneys for both parties and a proposed final judgment (not yet entered by Judge Kennelly) just appeared on the Court's online docket. Perhaps the July 7 trial, which was to last approximately a month, has been averted? Keep in mind that a final judgment and/or other dispositive order has not yet been entered by the Court...

Ninth Circuit: Roommates.com largely unprotected by Section 230

Posted on April 04, 2008
Earlier today the U.S. Court of Appeals for the Ninth Circuit, in Fair Housing Council of San Fernando Valley, et al v. Roommate.com, LLC, issued an en banc ruling that rejects the majority of the website's assertions of Section 230 immunity. For purposes of this (lengthy) post, I will assume you are familiar with the facts of the case and previous rulings...

Victory for ZeroBrokerFees.com in New Hampshire

Posted on April 01, 2008
Yesterday Magistrate Judge James Muirhead ruled in favor of ZeroBrokerFees.com in the website's suit challenging the applicability of the New Hampshire Real Estate Practice Act - specifically the licensure requirement - to the operation of ZeroBrokerFees...

7th Circuit rules in favor of Craigslist

Posted on March 14, 2008
Here's the decision. It looks like my prediction was pretty much on the mark.In an opinion by Judge Easterbrook, the 7th Circuit has affirmed Judge St. Eve's grant of Craigslist's motion for judgment on the pleadings. In other words, the Court ruled that Section 230 protects Craigslist from the Fair Housing Act claims contained in plaintiff's complaint...

Illinois anti-rebate legislation (HB 4313)

Posted on February 18, 2008
An Illinois broker recently informed me that State Representative Robert Molaro (who himself does not appear to be a licensed broker or salesperson in Illinois) has introduced anti-rebate legislation in Springfield. The bill is scheduled to be heard this Thursday by the Judiciary I - Civil Law Committee...

Seventh Circuit considers whether Section 230 protects Craigslist from Fair Housing Act claims

Posted on February 18, 2008
Last Friday the U.S. Court of Appeals for the Seventh Circuit, based here in Chicago, heard oral arguments in the plaintiff?s appeal of Chicago Lawyers? Committee for Civil Rights Under Law, Inc. (?CLC?) v. Craigslist Inc. (?Craigslist?). CLC, as you may recall, is appealing Judge St...

Oral Argument in Craigslist Litigation

Posted on January 07, 2008
The Seventh Circuit will hear oral argument (fifteen minutes per side) in Chicago Lawyers Committee for Civil Rights Under the Law, Inc. v. Craigslist Inc. on February 15, 2008. We won?t know the panel?s composition until the morning of, but I?m crossing my fingers Judge Easterbrook will be selected so we can see how his thinking has evolved, if at all, since the Circuit?s 2003 GTE ruling...

Realcomp wins Round 1 with the FTC

Posted on December 13, 2007
Here's an excerpt from today's press release from the Federal Trade Commission:In an initial decision filed on December 10, 2007 and announced today, Chief Administrative Law Judge (ALJ) Stephen J. McGuire dismissed a Federal Trade Commission complaint issued last year against a realtors? group in southeast Michigan, ruling that ?upon review of the totality of the evidence ...

Another MLS settles with the FTC over alleged anticompetitive practices

Posted on December 12, 2007
From the Federal Trade Commission's press release of earlier today:The Federal Trade Commission today charged Multiple Listing Service, Inc. (MLS), a group of real estate professionals based in Milwaukee, Wisconsin, with violating the antitrust laws by adopting rules that withheld valuable benefits of the multiple listing service it controls from consumers who chose to enter into non-traditional listing contracts with real estate brokers...

Judgment entered against Idaho class on tying claims

Posted on December 04, 2007
It's been over six months since anything material has come out of the four class actions pending in federal district court in Idaho. You'll recall the court previously certified the following class in these cases, which allege that each defendant illegally tied the purchase of undeveloped land to payment of a commission based upon the value of the land plus anticipated development thereon: All persons who: (1) bought an undeveloped lot in a subdivision in either Ada, Boise, Canyon, Gem or Owyhee county, Idaho between August 18, 2001 and February 28, 2006 in which Defendant has or had the exclusive right to market or sell the subdivision lots on behalf of the developer; (2) were required to build a house on the lot in order to buy the lot; and (3) were required to pay Defendant a commission based on the cost of the lot plus the actual or estimated cost of the house in order to buy the lot...

Court denies majority of Missouri Real Estate Commission's Motion to Dismiss KCPA's complaint

Posted on November 27, 2007
After the defendants filed their motion to dismiss over the summer, it's been pretty quiet in Kansas City Premier Apartments v. Missouri Real Estate Commission, et al. [In a nutshell, KCPA filed suit earlier this year in a Missouri state court, seeking a declaration that MREC cannot require KCPA - which operates a website that displays apartments available for rent - to obtain a real estate license...

Court denies motion for arbitration in Home Quarters litigation

Posted on November 05, 2007
It has been several months since I last wrote about the Home Quarters v. Realcomp action pending in Michigan. Last month, Magistrate Judge Whalen denied defendant MIRealSource's motion to compel arbitration and stay the litigation. The court relied in part on Judge Bucklo's recent decision in the Hackman suit pending in Illinois, stating that "[f]or virtually identical reasons, present Plaintiff's antitrust claims fall outside the 'disputes' contemplated by NAR's Manual, which, as in Hackman, was incorporated in its entirety into the arbitration agreement...

Federal antitrust enforcer nails another MLS

Posted on October 17, 2007
Perhaps you've already read about it over at the InmanBlog, but if not, I see that the Department of Justice has reached a tentative settlement with the Multiple Listing Service of Hilton Head. The agreement would require the rescission of discriminatory membership rules which burdened non-traditional brokers, minimum service requirements, and the authority of the MLSs' trustees to adopt rules that could directly regulate commissions...

Chicago Lawyers' Committee files appellate brief in Craigslist litigation

Posted on October 13, 2007
Complying with the recently announced filing deadline, the Chicago Lawyers' Committee has filed an appellate brief in its case against Craigslist, presently pending before the Seventh Circuit.Buried in a footnote is where I found the only reference to the Ninth Circuit's now-benched Roommate...

New federal website addresses competition in the real estate brokerage industry

Posted on October 10, 2007
Earlier today Inman News' InmanBlog posted on a new website created by the U.S. Department of Justice's Antitrust Division that is intended to shine some light on anticompetitive real estate brokerage practices. A DOJ press release accompanied the site's launch...

Update on Chicago Lawyers' Committee v. Craigslist

Posted on September 24, 2007
For those of you unfamiliar with this case, check out my guest post that appeared on May It Please The Court just after Judge St. Eve ruled last year on Craigslist's motion for judgment on the pleadings. After the court denied plaintiff's subsequent motion to reconsider, plaintiff appealed, and for the last six months the Seventh Circuit has suspended briefing, presumably to allow for a negotiated resolution...

UPDATE: U.S.A. v. National Association of Realtors

Posted on September 11, 2007
District Judge Filip held a status hearing this morning in US v. NAR.Discovery closes in a few months (November 21), and NAR's counsel stated that his client would "quite likely" be filing a motion for summary judgment thereafter. The court directed that such motion should be filed no later than January 14, 2008...

Federal judge enters preliminary injunction against KREC Commissioners, rules certain state laws unconstitutional

Posted on September 04, 2007
I've written about River Oaks Management v. Kentucky Real Estate Commission on several occasions (most recently here), and about an hour ago an anonymous commenter to an earlier post advised me that the court had ruled on several pending motions. Whoever you are, thank you! Here is a link to today's Order and accompanying Opinion...

Significant rulings in Hackman v. Dickerson Realtors, et al

Posted on August 31, 2007
It has been some time since I last wrote about Greg Hackman's private antitrust lawsuit filed against multiple real estate players in Rockford, Illinois. But earlier today Judge Bucklo issued a 50 page opinion in the case, ruling on a number of motions that have been pending before her...

Online Liability Blog

Posted on August 24, 2007
This post is admittedly a little off topic. No antitrust/competition angle here, but there is a real estate connection. Perhaps you recall the forsalebyowner case and/or the pending zerobrokerfees and kcpremierapts cases, each implicating licensing laws and the First Amendment? Or maybe you read about the Roommate...

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