In its latest filing for damages, Utah-based discount brokerage Homie asserted that NAR, KW, RE/MAX and others created and enforced laws that amounted to an illegal conspiracy.
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The National Association of Realtors and some of the nation’s largest brokerages and franchisors have joined forces to prevent discount brokerages from competing in the real estate market by creating and enforcing illegal rules, Utah-based discount brokerage Homie wrote in a new filing Friday.
The filing comes amid Homie’s ongoing legal efforts to obtain damages from NAR, Anywhere, Keller Williams, HomeServices of America, RE/MAX and HSF Affiliates, saying they “conspired” to stifle innovation and boycott low-commission listings.
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NAR and the companies asked the US District Court in Utah that dismissed the case last monthdenying that there was a conspiracy, pointing out that Homie successfully grew his business during the alleged conspiracy, and that the company would actually benefit from any scheme to siphon commissions.
In his response, Homie said that the NAR and the defendants have created a “weapon” through the various laws they have created and are using.
“Having manufactured the weapon and placed that weapon in the hands of their members and associates with instructions to use it, the Defendants are responsible for the consequences of the weapon’s release in Utah,” Homie wrote Friday.
Homie directed the defendants in the case involving the glasses of others which resulted in some historic places and rapid changes in the industry. Namely, it directs the Law of Participation, the Law of Buyer and Seller Compensation, the Law of Free Service, the Law of Concealment of Commission, the Law of Filtering of Commission and the Law of Clear Cooperation.
All but the Clear Cooperation Act have been repealed, and that is currently up for debate.
“Exercising their control over the MLS, Defendants promulgated regulations that created substantial barriers to entry and expanded new low-cost competitors.”
Utah-based Homie once sought to expand its market share as a discount to traditional brokerages. It has since it turned outlaying off workers, converting wage agents into contractors and dealing with unrest.
“Creating barriers to entry or expansion is particularly problematic when a small, aggressive competitor, like Homie, is ready, willing, and able to compete by offering low prices but is hampered by the defendants’ conduct,” Homie wrote in his filing. “The NAR [policies in question] they are unreasonable barriers to trade because they create barriers to entry and growth for competitors who want to compete using lower prices.”
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