The Real Brokerage (Real), a company that combines real estate, mortgage and closing services with technology in an effort to deliver a single end-to-end consumer experience, announced on April 8 that it has entered into a settlement agreement to end the pending class-action litigation, Umpa v. NAR, on a nationwide basis.
It is one of nine lawsuits that lawyers representing plaintiffs in two commission lawsuits recently petitioned to have consolidated in a single district to be overseen by the same judge who presided over the Burnett case, Judge Stephen R. Bough.
Real was one of the few real estate companies not covered by the National Association of REALTORS®’ settlement agreement that had not yet reached settlement terms with the plaintiffs and their attorneys.
Under the agreement, Real will pay $9.25 million into a qualified settlement fund within 30 days following the court’s preliminary approval of the settlement. Real does not foresee the settlement terms having a major impact on its future operations.
According to Real, this settlement conclusively addresses all claims asserted against Real in the Umpa lawsuit, releasing Real, its subsidiaries and affiliated agents from these claims. The settlement does not constitute an admission of liability by Real, nor does it concede or validate any of the claims asserted in the litigation.
Additionally, Real has agreed to implement changes to its business practices, including specifics about the negotiability of commissions, buyer-agent service information and including listing-broker compensation offers in communications with clients. Real will also develop training materials to support these practice changes.
The settlement agreement will not be final until court approval.
